13 Nebraska Senators assert stance against mobile gambling as tax debate continues

LINCOLN, Neb. (WOWT) – In the wake of casino legalization in Nebraska, and as gambling races its way to the forefront of the sports and entertainment industry, some lawmakers say it’s time to pump the brakes in the Cornhusker State.

With a special session geared toward slashing Nebraska’s property tax rate having reached its 14th day of debate Friday, the expansion of gambling legalization in the state could be called upon as a potential solution, which is why a group of 13 senators released the following statement:

Senators John Lowe, Ray Aguilar, Joni Albrecht, Robert Clements, Robert Dover, Steve Erdman, Steve Halloran, Brian Hardin, Rick Holdcroft, Loren Lippincott, Rita Sanders, and Julie Slama issued the statement.

Mobile wagering has rapidly increased in popularity over the past half decade, since May 2018 when the U.S. Supreme Court struck down a 1992 federal law banning sports gambling in most states. Prior to that court decision, sports betters could only get their fix — legally, at least — in Las Vegas. Now, sportsbooks and online casinos like Fanduel and DraftKings are available at the press of a button in 26 states.

Nebraska’s neighbor to the east, Iowa, made it legal in August 2019 while southward in Kansas, the law began allowing mobile gambling in the summer of 2022. And it’s important to remember that legalization of mobile gambling isn’t limited to sports betting. In some states, popular sportsbook apps have become full-blown pocket casinos, with games like roulette, poker and blackjack.

Lawmakers in Nebraska, though, have remained steadfast in largely blocking the mobile gaming industry from entering its borders, and this group of 13 state senators is set on keeping it that way.

Their statement Friday cites data from the National Council on Problem Gambling, which says online sports betting has increased the risk of gambling addiction by 30 percent, while the council’s helpline reports a 150 percent spike in calls. The data also shows that 20 percent of college students gamble using financial aid dollars.

But the argument from their opposition boils down to the amount of money being pulled in by the states who have already legalized mobile casinos and sportsbooks.

Since changing the law in 2019, Iowa has seen over $9 billion in wagers placed and, in turn, has collected $44 million in tax revenue with just a 7.3 percent hold — the lowest of any state besides Nevada. In states with a higher hold percentage, like Louisiana, $6 billion in wagers has turned into $108 million in tax revenue.

Nebraska isn’t totally anti-gambling in comparison to some states. Casino licenses have been granted in several places across the state, including a WarHorse Casino in Lincoln, which opened in 2022, and a brand new one in Omaha.

With that in mind, the group of 13 senators fear that, as states which have preceded Nebraska in this process have shown, mobile gambling will soon follow suit.

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