Nebraska sports betting supporters eye legalization through 2026 ballot

Efforts to legalize online sports betting in Nebraska are shifting away from the statehouse and toward the ballot box, with casino operators and supporters preparing to launch a petition drive aimed at the 2026 general election.

Advocates argue the state is losing out on tax revenue as residents cross state lines or turn to illegal platforms.

“The bottom line is, you’re allowing tax money to go to Iowa, Kansas, Colorado, just like with the casinos. People are using VPNs, and they’re disguising their location, pretending they’re in Iowa,” said Lynne McNally of WarHorse Casinos, which operates facilities in Omaha and Lincoln.

The ballot initiative would propose a constitutional amendment allowing Nebraskans to place wagers online. To succeed, organizers must gather signatures from at least 10% of registered voters. With 1,257,860 voters currently on the rolls, that translates to 125,786 certified signatures. Supporters say signature collection could begin in the coming weeks.

The push comes after another unsuccessful attempt to expand sports betting through legislation. Nebraska currently permits wagers only at licensed casinos, taxed at 20%.

Earlier this year, Sen. Eliot Bostar (D-29) introduced LR20CA, a bill that sought to expand the system to online platforms. He estimated the state could raise an additional $32 million in tax revenue over two and a half years if legalization moved forward.

Bostar’s measure initially gained momentum. It cleared the Senate General Affairs Committee with a 6-2 vote in March and passed one round of floor debate in April with a 27-16 majority. But Nebraska’s unicameral process requires three successful votes with two-thirds support before a bill can proceed. The proposal faltered after a filibuster prevented further consideration.

The stalemate prompted frustration from industry leaders, who had warned legislators that failure to act would likely result in a referendum campaign. Missouri took that route in 2024, when professional sports franchises backed a successful statewide ballot initiative to legalize sports wagering.

Some lawmakers believe the legislature should retain authority rather than leave the question entirely in voters’ hands. During the debate, Bostar argued that senators would have more influence over regulatory details if they advanced their own bill. Sen. John Cavanaugh (D-9) acknowledged his unease with legalization, saying it caused him “heartburn,” but he also stressed the importance of legislative oversight compared with a petition-driven amendment.

Opponents remain wary of the social costs of online betting, particularly concerns that cellphone-based gambling could prove addictive for younger residents. They also questioned whether promised revenues would meaningfully ease property tax burdens.