Nebraska Betting Amendment Passes Committee, But Floor Vote Remains Uncertain
Date: 2024-08-14 Author: Robert Beloved Categories: SPORTS BETTING
On August 12, 2024, the Nebraska General Affairs Committee approved LR3CA, a constitutional amendment that would allow state residents to vote on whether to expand gambling in Nebraska to include digital sports betting. The committee voted 5-2 to bring the amendment to the floor for debate. However, the bill that would define the framework for regulating the issue has not yet been approved.
If the bill passes and Nebraska residents vote to hold a referendum, the state legislature would be required to develop detailed rules for digital betting. LB13, the bill that accompanied the amendment, included provisions to bring the issue to a vote later this year. However, without specific exceptions, the issue will not be put to a vote until 2026.
Senator John Kavanaugh has proposed changes to LR3CA before it is approved. According to the Lincoln Journal-Star, Kavanaugh said the changes would keep control in the hands of legislators while still giving voters a voice. Legislators would then be able to determine how much regulation there will be over digital betting.
Kavanaugh also noted that the changes would allow legislators to decide how revenue from sports betting would be distributed. The original bill earmarked most of the tax revenue to reduce property taxes.
Nebraska Betting Vote in Question
While the state legislature believes it should be put to a vote, existing laws may assume online sports betting is already legal. In 2020, Nebraskans voted to expand gambling by legalizing “games of chance.” At the time, there was some question about whether sports betting was considered such a game, but lawmakers later acknowledged that it was.
However, when drafting legislation in 2021 and setting the rules for regulation, none of the documents mentioned digital betting. The current law defines a gaming device as “an electronic, mechanical, or other device that is activated by a player to play a game of chance.” Mobile devices essentially fall under this definition.
However, no interested parties have challenged this language so far, and the current legislature continues to move toward a referendum.
Uncertainty in the special legislative session
Senator Eliot Bostar introduced a package of bills in late July when the Nebraska legislature began its special session. No specific date has yet been set for the end of the session. It was clear at a hearing in late July that there is little consensus among legislators on how to move these bills forward.
The main reason for the push to legalize digital betting comes down to finances. Bostar’s bill would direct 90% of state revenues to reduce property taxes, a key issue for the state. Nebraska funds its public education system through property taxes, which are among the highest in the country.
If the constitutional amendment passes, betting will be on the agenda for the November 2024 presidential election.
