Nebraska Poised to Revisit Online Sports Betting with Two 2025 Bills Carrying Over
Nebraska lawmakers are carrying two separate measures into 2026 that would legalize mobile sports betting in the state.
LISTEN TO THIS ARTICLE:Senate and legislative leaders carried forward two proposals from the 2025 session that could finally open the Cornhusker State to mobile sports wagering. Legislative Bill 421 (LB 421), introduced by Senator Stanley Clouse in 2025, and Legislative Resolution 20CA (LR 20CA) both survived the session’s deadline and are now active for lawmakers to reconsider in 2026.
LB 421 would amend Nebraska’s Racetrack Gaming Act to permit licensed racetracks to offer online sportsbooks in addition to the retail wagering they have offered since 2021. The measure would also expand the remit of the Nebraska Racing and Gaming Commission to include oversight of mobile operators. A key policy change in the bill would lift the current prohibition on bets involving in-state college teams, allowing Nebraskans to wager on contests featuring the University of Nebraska and other local programs.
Under LB 421, online betting would carry the same 20% tax rate as retail racetrack gaming. The bill designates the lion’s share of revenue, 90% for the Property Tax Credit Cash Fund, with smaller allocations flowing to the Racing Cash Fund, the Racetrack Gaming Fund and the Compulsive Gambling Assistance Fund. Legislative fiscal estimates produced in 2025 projected roughly $9.3 million in tax receipts in the first year of operation, with proponents suggesting that figure could grow substantially as the market matures.
Ballot-Box Alternative and Broader Policy Debate
LR 20CA takes a different route: rather than setting regulatory details in statute, it would ask voters to approve a constitutional amendment permitting racetracks to partner with online betting operators to run sportsbooks. The resolution passed a General Affairs Committee vote in 2025 and cleared an initial Senate floor vote but was later withdrawn when supporters deemed legislative backing insufficient. If placed on the November 2026 ballot and approved by voters, LR 20CA’s backers say the measure could eventually generate as much as $32 million annually in tax revenue – depending on market structure and participation.
Both measures have attracted bipartisan interest in Lincoln and raised familiar debates about economic opportunity versus public health. Supporters point to new tax revenue, job creation at racetracks and the state’s ability to regulate a market that currently pushes Nebraskans to out-of-state and offshore operators. Opponents and some committee members voiced concerns in 2025 about an uptick in problem gambling that could accompany wider access to mobile wagering.
"Legalized mobile wagering will require significantly more regulatory capacity than retail-only operations", said a spokesperson for the Nebraska Racing and Gaming Commission. "If LB 421 becomes law, the commission will need new staff, enhanced monitoring tools and robust consumer-protection rules to oversee digital platforms effectively."
Independent analysts note the revenue estimates hinge on product access, promotional activity and whether Nebraska allows bettors to stake in-state collegiate events. "Initial tax projections are modest but realistic", said an independent gaming analyst who tracks Midwestern markets. "However, if Nebraska permits full market access and partners with experienced operators, statewide online handle and tax receipts could expand quickly – potentially reaching the tens of millions within a few years."
Related: Nebraska Senators Advance Mobile Betting Amendment
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Practical questions remain for either path to legalization. LB 421 would set the regulatory framework immediately through statute, creating licensing processes and tax allocations lawmakers have already specified. By contrast, LR 20CA would push the core decision to voters and require additional legislation to implement details if approved. Either outcome would require coordination with national sports bodies and collegiate stakeholders; the continued ban on betting on in-state college teams has been a political flashpoint and a primary driver of debate.
As 2026’s legislative calendar begins, Nebraska’s debate will track broader national trends since the 2018 repeal of the federal sports-betting ban: states continue to weigh revenue gains against consumer safeguards. Lawmakers in Lincoln must now decide whether to move quickly with LB 421’s statutory approach or let Nebraskans decide at the ballot box via LR 20CA. Both routes remain viable and will be watched closely by operators, regulators and advocacy groups across the region.
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