- Two bills that didn’t make it through in 2025 are getting another chance as lawmakers push to legalize online sports betting in Nebraska.
- LB 421 would set up a 20% tax with most money going to property tax relief, while LR 20CA wants voters to decide the issue in November.
- There’s still a petition route available if both bills fall short, similar to what worked for Missouri when they legalized it in 2024.
LINCOLN, Neb. – Lawmakers are giving online sports betting legalization another try in 2026. Two bills that didn’t make it through last year are back on the table now that the new legislative session started up on January 7.
The Nebraska legislature has a two-year window during which bills that are not completely rejected can be carried over to the following year. Senator Stanley Clouse’s LB 421 and Senator Eliot Bostar’s LR 20CA are both moving forward under this process.
Breaking Down LB 421
Clouse’s bill would update the Nebraska Racetrack Gaming Act to allow online sports betting with a 20% tax rate, matching the rate applied to physical Nebraska sportsbooks that opened in 2021. The Nebraska Racing and Gaming Commission would oversee the regulatory framework.
About 90% of the tax revenue would be allocated to property tax relief, with the remaining funds distributed among the Racing Cash Fund, Racetrack Gaming Fund, and Compulsive Gambling Assistance Fund.
Additionally, the bill would lift the prohibition on wagering on Nebraska collegiate teams at home. This clause is especially important for the state’s betting market because the Cornhuskers have sold out every home football game since 1962—the longest run of any sport in NCAA history.
In the first year, they expect to collect more than $9.3 million in taxes, and in the fourth year, more than $20 million. LB 421 was heard by the General Affairs Committee in March 2025, but nothing has happened since.
LR 20CA Made Significant Progress
In comparison to LB 421, Bostar’s resolution, LR 20CA, made significant progress. In April, it cleared its first Senate floor vote 27–16 after passing the General Affairs Committee 6–2. The resolution intends to put the matter on the ballot for voters to determine in November 2026.
When Bostar realized he didn’t have the votes to pass a filibuster, which required 33 votes, he withdrew the bill back. Senators who were concerned that gambling issues would worsen and others who thought the matter should be resolved by a public petition rather than the legislature were the primary sources of opposition.
What’s Next
Supporters may try a petition-driven ballot initiative if both legislation fail once again. This strategy was effective in Missouri in 2024, and last month the state saw the introduction of legal sports betting. Nebraska would need signatures from 5% of at least 38 out of 93 counties and 10% of the state’s registered voters.
Online sports betting sites may open in Nebraska by 2027 if either legislative path is successful this year.
