Nebraska online sports betting could raise $87 million in tax revenue in five years, study says

A study commissioned by Tax Relief Nebraska found that legalizing online sports betting in Nebraska could generate just under $87 million in state tax revenue over five years, as supporters push to put the measure before voters in 2026.

The research by Eilers & Krejcik Gaming assumes that 70% of the revenue could be directed toward property tax credits, the same rate as casino gambling. Under this condition, it would translate into roughly $61 million in tax relief over the same period.

Backers of the initiative say the additional revenue could help stabilize the state’s budget as lawmakers grapple with a structural deficit, while also recapturing funds flowing to neighboring states where online sports betting is already legal.

“We have to find the revenue somewhere,” said Jordan McGrain, a petition sponsor.

Opponents, however, argue the projected financial impact is too small to meaningfully affect property taxes or the state’s fiscal position. State Sen. Brad von Gillern of the Elkhorn area, who chairs the Legislature’s Revenue Committee, said the estimated returns would amount to roughly 1% of the current property tax credit program annually.

“If people are voting for the online gambling initiative believing that it’s going to substantially change their property tax bill, they’re going to be sadly disappointed,” von Gillern said.

Efforts to legalize online sports betting in Nebraska have stalled repeatedly in the state legislature. A recent attempt, Legislative Bill 421, introduced by State Sen. Stanley Clouse of Kearney and State Sen. Eliot Bostar of Lincoln, projected about $70 million in revenue over four years, but the legislation failed to advance.

Clouse, who has said he is not a proponent of gambling, has argued that legalization would at least broaden the state’s tax base and give lawmakers greater control over regulation and taxation. The proposal also included directing 2.5% of revenues to the state’s Compulsive Gambling Fund.

Clouse and other LB 421 supporters at the time predicted that if the Legislature did not pass the bill, there was enough public support for an independent ballot initiative, which state lawmakers would have less control over regulating.

“Now, we will live with what the voters decide,” Clouse said.

Critics of legalization continue to raise concerns about the social costs of gambling, questioning whether the potential fiscal benefits outweigh the risks.