- WarHorse Gaming and major betting operators filed petitions to legalize mobile sports betting after lawmakers killed a similar bill last year.
- The initiatives include a 20% tax on online wagers, with most revenue going to property tax relief and an estimated $100 million in total taxes.
- Signature collectors have until early July to gather support from 7-10% of registered voters across at least 38 counties to make the November ballot.
LINCOLN, Neb. – Casino operators in Nebraska have launched a petition drive to legalize mobile sports betting after the state legislature failed to pass similar legislation last year. WarHorse Gaming, supported by major betting companies including DraftKings, FanDuel, and BetMGM, filed two ballot initiatives on Friday with the Nebraska Secretary of State’s Office.
The action follows the filibuster of State Senator Eliot Bostar’s constitutional amendment, LR20CA, for more than three hours in April of last year until it was withdrawn. With just 60 days left in the current legislative session and a budget shortfall to solve, casino operators decided to bypass the legislature entirely and take the issue directly to voters in November.
While mobile betting is still forbidden, Nebraskans are currently able to wager on sports in person at casinos. Due to this prohibition, residents have been forced to travel over state boundaries to Iowa, Kansas, and Colorado, where legal sports betting is available on phones and computers. Lynne McNally, director of government relations at WarHorse Casino, claims that this is causing the state to lose a substantial amount of tax income.
The Financial Case for Mobile Betting
According to McNally, the combined tax revenue from casinos in Lincoln and Omaha last year was $66 million. When mobile betting is taken into account, she estimates the amount may reach about $100 million. A 20% tax on online betting earnings would be imposed as part of the planned initiatives, with the majority of the money going toward property tax relief and minor amounts going toward problem gambling programs and local governments.
The petition effort requires two separate initiatives due to Nebraska’s single-subject rule. One would amend the state constitution to permit online wagering through Nebraska sportsbooks affiliated with licensed racetracks. The other would establish the tax structure and revenue distribution system.
The petition organizers must collect signatures from roughly 10% of voters who are registered to vote for the constitutional amendment and 7% for the tax plan in order for it to appear on the November ballot. Additionally, before the early July deadline, at least 5% of voters from 38 of Nebraska’s 93 counties must sign on.
Having spearheaded the 2020 campaign to authorize casino gambling at racetracks, WarHorse Gaming has experience running successful ballot campaigns. Polling indicates that 59% of Nebraskans are in favor of legalizing mobile sports betting, despite resistance from anti-gambling activists like Pat Loontjer of Gambling with the Good Life.
