Could legal online sports betting be the answer to Nebraska’s property tax issue?

Starting on Thursday, July 25, Nebraska legislators will meet for a special session called by Governor, Jim Pillen. The goal of this special session is to discuss the property tax reform issue in the state. Previously, reports had indicated that legal sports betting might not be available to residents until 2026. However, legislators are expected to discuss the potential legalization of online sports betting. There’s a belief from Governor Pillen that revenue from online sports betting could be a source of property tax reduction. Pillen claims that property taxes could be decreased by 50% as online sports betting is projected to bring in $30 million annually in Nebraska, according to KETV.

Legislators want to see online sports betting added to the November ballot

Leading the efforts for online sports betting to be added to the November ballot is Ho-Chunk Inc. They are the economic development corporation of the Winnebago Tribe of Nebraska. Ho-Chunk operates WarHorse Gaming and operates retail casinos in Omaha, Lincoln, and South Sioux City. Nebraksa gaming officials are eager to get approval for a bill that would add online sports betting to the November ballot. Lance Morgan is the CEO of Ho-Chiunk. He believes legalizing sports betting would be a viable option to help address the property tax issue in Nebraska. Other legislators are practically begging for online sports betting to be legalized as the state continues to miss out on revenue. Neighbor states like Iowa are majorly profiting off online sports betting not being available in the Cornhusker state.  

According to reports, Iowa has indicated that 90% of its sports betting revenue comes from online platforms. In states where online sports betting is legal, it’s not uncommon to see such a high percentage of revenue coming from online wagers. The Iowa Racing and Gaming Commission reported that 92% of their $2.6 billion in revenue from 2023 was from online bets. Since January, retail sportsbooks in Nebraska have reported only $1.7 million in sports betting revenue. That’s just $342,000 in tax revenue. To get online sports betting on the November ballot, the Nebraska legislature must approve it with a 60% supermajority vote. Polls around that state indicate that 65% of their residents support online sports betting’s legalization.