A new proposal that would permit statewide online sports betting under the current Nebraska Racetrack Gaming Act is being considered by Nebraska lawmakers.
Beyond the existing activities permitted within racetrack enclosures, Legislative Bill 421, a measure put forth by Senator Clouse during the 2025 session, seeks to expand the scope. The bill would authorise licensed gaming operators to offer sports wagering via approved online platforms.
Platform providers would be regarded as sports wagering vendors under state law, and only organisations already licensed as authorised gaming operators at licensed racetrack enclosures would be permitted to offer online sports betting.
Regulatory Powers and Tax Distribution
LB421 broadens the State Racing and Gaming Commission’s responsibilities to include online sports wagering. The commission would be tasked with licensing and overseeing approved gaming operators and platform providers.
These operators also need to approve internal controls for online betting systems, examine floor plans for designated sports wagering areas, and enforce regulations designed to thwart corruption, fraud, and underage gambling.
The commission is required to review and either approve or deny proposed controls for online sports wagering within a month of its submission.
Operators must have an equal opportunity to launch on the same date if controls are approved during the initial review period.
Additionally, the law requires the commission to prohibit certain people from placing bets, such as certain athletes, coaches, and people who have access to private information.
Also, it compels operators to utilise a state database to block gambling winnings for anyone with unpaid debts or tax obligations.
Taxes on gross gaming revenue generated by sports betting would be credited 3% to the Compulsive Gamblers Assistance Fund, 3.5% to the Racing and Gaming Commission’s Racetrack Gaming Fund, 3.5% to the Racing Cash Fund, and 90% to the Property Tax Credit Cash Fund.
If passed, the act is scheduled to become operative on September 1st, 2025, and includes an emergency clause stating that it takes effect when passed and approved according to law.
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