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Online Sports Betting In Play During Nebraska Special Session

August 1, 2024
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Legislation that would legalize mobile sports betting in Nebraska is one of the issues being considered during a special session of the state鈥檚 unicameral legislature.
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Legislation that would legalize mobile sports betting in Nebraska is one of the issues being considered during a special session of the state鈥檚 unicameral legislature.

Republican Governor Jim Pillen called a special session of the state legislature this summer to consider several revenue-related issues to reduce property taxes in the state, and state Senator Eliot Bostar, a Democrat, introduced a pair of bills that would amend the state鈥檚 constitution to permit mobile sports betting.

Currently, land-based sports betting is only permitted at state-licensed racinos in Nebraska.

Pillen said during a press conference last week that he would introduce a priority bill in January during the next regular session of the legislature to approve mobile betting.

鈥淧eople have spoken, we鈥檝e approved gambling,鈥 Pillen said. 鈥淥nline sports betting is real and it鈥檚 happening in the state. Whoever wants to do it is doing it, and we鈥檙e giving all the revenue to our neighbors.鈥

Bostar, however, argued that the legislature should act sooner to permit voters to weigh in on the issue rather than wait until a potential referendum in 2026.

鈥淚f we think this is something that鈥檚 going to happen, all we鈥檙e doing by delaying is sending more Nebraskans' money to other states instead of using it to help the folks right here in our constituencies,鈥 Bostar said during a hearing of the Senate's General Affairs Committee, where the bill was considered Wednesday (July 31).

Lance Morgan, CEO of Ho-Chunk Inc, the economic development arm of the Winnebago Tribe of Nebraska, which owns two casino properties in the state, said the tribe supported the plan and had already reached market-access agreements with DraftKings, FanDuel and BetMGM if mobile betting is ultimately legalized.

鈥淚f you鈥檙e not with one of the larger entities, it鈥檚 like MySpace versus Facebook on the internet, and we wanted to make sure that we weren鈥檛 Sears versus Amazon and had the old technology,鈥 Morgan said. 鈥淎nd so we proactively engaged these companies in case this ever happened, and the minute it becomes legal, our contract with them kicks in and we become partners.鈥

鈥淲e just didn鈥檛 want to be left out in the cold,鈥 he added.

Under Bostar鈥檚 two companion bills, and , each racino would be eligible to partner with one mobile sports wagering platform.

Danny DiRienzo, senior director of government relations for GeoComply, pointed to the company鈥檚 map of geolocation checks that showed high volume on the border between Nebraska and Iowa, where mobile betting is legal.

"I haven鈥檛 researched every cornfield in the United States, so I鈥檓 taking a bit of a leap of faith on this, I actually don鈥檛 know if it鈥檚 the busiest cornfield (for sports betting) in the U.S., I suspect it is,鈥 he said, pointing to a location which marks the first exit on the main highway that leads from Nebraska to Iowa.

鈥淭here is literally nothing there, and GeoComply processed 500,000 geolocation checks,鈥 DiRienzo said. 鈥淚 would submit that鈥檚 not organic Iowa sports-betting traffic, that is very likely all related to Nebraskans crossing the border to place a legal wager.鈥

Opposition to Bostar's legislation came from, among others, former University of Nebraska football coach Tom Osborne, a legendary figure in the state who served in the U.S. House of Representatives after retiring from football. He argued that the harms of gambling expansion would be more costly to the state than the revenue it produced, and referenced recent scandals in college sports with regard to athletes betting and harassment of athletes as increased risks.

鈥淚 can attest to the fact that the most intense criticism and negative circumstances that coaches and athletes have is often not just due to losing on the scoreboard, it often results from not beating the point spread or meeting [other metrics],鈥 Osborne said. 鈥淭he athletic contest becomes less of a sporting event and more of a gambling exercise with a gambler鈥檚 financial security at risk.鈥

Osborne also pushed back against the idea that the state needed to recapture the revenue that was flowing to other states.

鈥淪ometimes you buck the flow,鈥 Osborne said. 鈥淚f all the revenue here was going to Iowa, was that beneficial? You would think that Council Bluffs would look like Abu Dhabi, but it doesn鈥檛.鈥

The special session has no defined end date, and the constitutional amendment would require 60 percent support from the Nebraska Senate to send the issue to voters in November, where a majority vote would be sufficient to adopt the amendment.

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