- Lincoln Sen. Eliot Bostar has proposed Legislative Bill 168 which would lift the ban on bets on Nebraska collegiate teams or athletes competing within the state.
- Nebraska legal sports betting has yet to launch but regulators expect it to be ready before March Madness.
- Sen. Tom Briese of Albon has proposed to tax the state’s “skill games” at the same rate as slot machines.
Nebraska’s legal sports betting has yet to launch but there is already a proposal to modify its gambling options.
The current law allows sports betting at horse racetrack casinos but only when bets are placed in person. Also, there is a prohibition on wagers involving Nebraska’s collegiate teams or athletes competing within the state.
That prohibition could be no more if Legislative Bill 168 will succeed. The bill, proposed by Senator Eliot Bostar of Lincoln, would lift the ban on betting on Husker home football games and other in-state matches played by the state’s college and university teams.
Bostar’s proposal also wants some of the tax revenue from sports betting would go to the Nebraska Opportunity Grand program which provides aid on a need-basis to post-secondary college and university students in the state. Currently, the program gets its funding from state lottery proceeds.
According to a report from the Omaha World-Herald, Bostar believes that the current sports betting law doesn’t constitute a good policy because it makes prohibits betting based only on the venue where the collegiate teams are playing.
Per Bostar:
This isn’t about expanding gambling. It’s about providing consistency in our statutes.”
Nebraska Sports Betting Nearing its Launch
Nebraska may launch sports betting soon
Nebraska’s legal sports betting rules have been approved by the Office of the Attorney General.#Nebraska #SportsBetting #Regulationhttps://t.co/Ouibqlb2NE pic.twitter.com/O55SLuS827
— Focus Gaming News (@FocusGamingNews) January 17, 2023
Earlier this week, Nebraska Racing and Gaming Commission Executive Director Tom Sage announced that the state is inching closer to launching legal sports betting. According to Sage, the framework of rules which the Commission greenlighted last October, has been examined and approved by the Office of the Attorney General.
The rules are to be sent to the office of Governor Jim Pillen this week for his signature. Once Gov. Pillen signs them off, they will be forwarded to the Office of the Secretary of State and will become official one week after that.
Given the process that the regulations will still have to go through, Sage said that it is unlikely that Nebraska’s legal sports betting industry will be ready to launch before Super Bowl LVII next month. However, Sage added that the Cornhusker State could capitalize on the March Madness Tournament in March, with the possibility that it could time its launch before the start of the NCAA Men’s Basketball Tournament.
Two Temporary Casinos in Nebraska
Currently, two casinos are operating in Nebraska, both temporary gaming facilities. The WarHorse Casino in Lincoln was the first casino to open in the state and is owned by WarHorse Gaming, the business arm of the Winnebago Tribe of Nebraska and the Nebraska Horsemen’s Benevolent and Protective Association.
The interim WarHorse Casino only carries 433 slot machines operating because of limited size. However, the permanent facility, which is expected to open this September, is expected to carry 1,300 slot machines, 100 table games, a retail sportsbook, a 200-room hotel, an events space, and live horse racing.
Meanwhile, the interim casino at Fonner Park owned by the racetrack and Elite Casinos opened last December 27th with just 260 slot machines and betting kiosks for simulcast horse racing. It will operate until the 37,500-square-foot permanent casino is completed. However, construction of the Grand Island Casino at Fonner Park will not begin until later this year.
Proposal to Tax Skill Games at 20%
Nebraska state senator and casino operator target “skill” games to pay the same taxes as slot machines and to help offset property taxes.
From @paulhammelNEhttps://t.co/5hvdbwbghD
— Nebraska Examiner (@NE_Examiner) January 9, 2023
In related news, there is a proposal from state senator Tom Briese of Albion to tax the so-called “skill games” at the same rate as slot machines so it could further help lower the state’s property taxes which is the main reason why lawmakers pushed for the legalization of sports betting. The proposed bill is supported by WarHorse Gaming which operates WarHorse Casino in Lincoln.
Currently, revenue from these skill games is divided between the host establishment, machine manufacturer, and route distributor. These machines are not taxed because according to the state Supreme Court in 2011, they do not constitute gambling. After all, the games involve the use of skill.
Advocates for these machines, which have become a fixture in convenience stores and supermarkets in the state, say that revenue from these gaming terminals provides critical revenue for small businesses. Under Briese’s plan, however, they will be taxed at 20% of net revenue, just like slot machines.
