Nebraska

Sports betting has been legal in the Cornhusker State since 2021, but for right now, bettors are limited to just two retail betting locations as they wait for online sports betting to officially launch.

Every state varies in its stance on betting on collegiate sports. In Nebraska, bettors can legally wager on college sports, but there are two caveats that customers must keep in mind. First, bettors are not allowed to wager on prop bets for college athletes, and they cannot bet on a Nebraska-based college if they are playing a game in the state.

Outside those restrictions, bettors in NE have free reign regarding betting on the NFL draft, eSports, and awards like the NBA MVP or Most Improved Player. Outside of markets that are directly tied to regulated sports betting, residents or tourists of Nebraska can also bet on horse racing either in person or online.

Residents can also access DFS products despite the fact that all legislation to legalize them has failed, leaving the market unregulated.

Online sports betting in The Cornhusker State

Nearly two years after PASPA was overturned, Nebraska residents were allowed to vote on a referendum that would enable retail casinos to open in the state, therefore allowing in-person sports betting. After residents voted “Yes,” lawmakers began working on the state's sports betting bill.

By March 18, 2021, the Nebraska state legislature passed LB 561, and the bill was signed into law in May by Gov. Pete Ricketts. With this bill's signing, the Cornhusker State could officially offer retail sports betting at select locations.

While residents of NE were finally able to rejoice about sports betting being legalized, they would not be able to place a legal sports wager until June 22, 2023, when the WarHorse Casino opened their sportsbook, becoming the first recognized racino in NE. Since then, they have opened a second location in Omaha, which can also accept sports wagers. As of right now, there are three locations that offer sports betting.

Rules and regulations regarding mobile sports betting were noticeably absent from LB 561. This doesn’t mean the state cannot add a bill that also legalizes mobile sports betting. However, with Nebraska moving on the slower side regarding its sports betting layout, bettors in the state could be waiting for a while to see a mobile betting app become available.

There are a few ways that mobile betting could eventually enter the state, one of which includes a bill that allows online operators to partner with current and upcoming racinos. Lawmakers have already started to feel increased pressure to legalize mobile sports betting since a report showed that Nebraska residents are crossing the state’s borders to Iowa to place online wagers.

Sports betting & gambling legislation in NE

As far as sports betting goes, the legal age to place a bet in Nebraska is 21. While this is the legal age for most gambling activities in the state, residents who are 18 years old can participate in activities like the lottery. Like all states with legal sports betting, Nebraska also prohibits betting on high school sports.

The Nebraska Racing and Gaming Commission enforces the legal gambling age and all additional rules and regulations for sports betting in Nebraska. Outside of the rules and regulations, bettors in the state need to know how they’ll be taxed. All winnings are treated as taxable income in NE, and the tax rate for them is 5%.

Whether or not iGaming and online poker will be added to any bill that includes mobile sports betting is yet to be determined. As all three options lay in wait to see if they will be passed, residents can still partake in the state lottery and use social sportsbooks as well.

Most recent updates from the NE sports betting scene

• April 27, 2024: Multiple sportsbooks have released their 2024 college football win totals, and the Nebraska Cornhuskers total currently sits at 7.5. The Cornhuskers are also currently (+30000) to win the National Championship.

• December 5, 2023: The introduction of legal casino gambling in eastern Nebraska has had a noticeable impact on Council Bluffs, Iowa casinos. Two major casinos in Council Bluffs had experienced a decline in revenue since late 2022 when Nebraska began offering slot gaming.

• November 20, 2023: The Nebraska Racing and Gaming Commission launches a statewide tip hotline, which is designed to address unethical or illegal activities occurring within casinos, racetracks, and sports gambling facilities across the state.

• October 2, 2023: Despite concerns about increased crime rates due to the legalization of casino gambling in Nebraska, The Lincoln Journal Star reports no significant rise in criminal activities in Lincoln.

In-person sports betting sites and locations

While tribal casinos exist in Nebraska, sports betting is limited to WarHorse Casino, which began accepting sports wagers from NE bettors on November 1, 2023. The state has five other tribal casinos, Iron Horse Bar & Casino, Lucky 77 Casino, Native Star Casino, Ohiya Casino, and Prairie Flower Casino, but these locations do not offer sports betting in any form, at least not yet.

In addition to the tribal retail casinos, there are six racetracks in the state, each offering NE bettors the possibility to lay wagers on horse races. Three of them (Lincoln Race Course, Fonner Park, and Horsemen’s Park) provide simulcast betting as an option. Each of these tracks can acquire a sports betting license in the future.

By 2025, there should be at least four retail locations in which a legal sports bet can be placed, but these numbers could change depending on how quickly these racetracks decide to build and open casinos.

Sports betting in neighboring states

If Nebraska bettors set out to look for more sports betting options, they won’t have to travel far in any direction as all five surrounding states offer legalized sports betting.

Each state has a different sports betting infrastructure. Iowa, Kansas, and Colorado have larger markets, while South Dakota and Wyoming have more limited markets. To learn more about each state’s betting landscape, click on it in the box below.

Sports betting revenue impact on Nebraska's economy

The Nebraska Racing & Gaming Commission is in charge of granting licenses to offer sports betting, but the actual fees for these licenses or their duration are currently unknown. We do know that all casino gambling revenue, including sports betting, is taxed at 20%, a bit higher than the average tax rate across states with legalized sports betting.

Complete reports specific to sports betting statistics in Nebraska are not fully available. Most revenue-based reports for gambling in the Cornhusker State combine all gambling activity at different locations. For example, we know that Nebraska produced $1.7 million in gaming taxes in December 2023, but how much of that is strictly from sports betting is unknown.

In total, in 2023, Nebraska compiled $17.8 million in gaming tax, which means casinos made close to $90 million in revenue during the year. Again, how much of this revenue stems from sports betting is unclear, but we project that this number should increase by the end of 2024 since more casinos are expected to open.