Nebraska could generate just under $87 million in new tax revenue over five years if online sports betting is legalised, according to new research commissioned by campaigners backing the move.
The study, conducted by independent research firm Eilers & Krejcik Gaming, estimates that around 70 per cent of that revenue would be directed towards property tax credits. This could deliver roughly $61 million in tax relief over the same period, mirroring the distribution model used for voter-approved casino gambling.
Property tax relief at centre of 2026 ballot push
The findings, as reported by the Nebraska Examiner, come as campaign group Tax Relief Nebraska pushes to place the issue of online sports betting legalisation on the 2026 ballot. Petition sponsor Jordan McGrain said signature collection is progressing ahead of schedule and described the report as a key tool in demonstrating the policy’s potential benefits.
McGrain argued that property tax relief has become a major concern for voters and said the projected revenue could help stabilise Nebraska’s budget, which continues to face a structural deficit. He also noted that most neighbouring states, except South Dakota, have already legalised online sports betting, suggesting Nebraska is losing potential revenue.
Lawmakers question impact on budget
However, scepticism remains among lawmakers. State Senator Brad von Gillern, chair of the Legislature’s Revenue Committee and a long-time opponent of online sports betting, said the projected gains would have minimal impact.
Breaking down the figures annually, von Gillern said the revenue would amount to roughly 1 per cent of the state’s existing property tax credit programme. “If people are voting for the online gambling initiative believing that it’s going to substantially change their property tax bill, they’re going to be sadly disappointed,” he said.
Previous legislative efforts failed to pass
Efforts to legalise online sports betting in Nebraska have repeatedly stalled in the Legislature. Critics argue that the financial benefits do not outweigh potential social costs, including increased gambling addiction. A recent bipartisan attempt led by State Senators Stanley Clouse and Eliot Bostar sought to address the issue through both legislation and a proposed constitutional amendment. Clouse’s bill, Legislative Bill 421, was estimated to generate around $70 million over four years.
Report says legalizing online sports betting in Nebraska could generate $87M over 5 years https://t.co/iJpO8ZQ16U
— David Arnold (@David_M_Arnold) April 27, 2026
Senator Eliot Bostar introduced LR20CA, a proposed constitutional amendment to legalise mobile wagering. The bill passed the committee with a 6–2 vote in March last year and received initial floor approval by a 27–16 margin in April. Estimates suggested that regulated mobile betting could generate approximately $32 million in tax revenue over 2.5 years. Nebraska has recently revisited the question of online sports betting, with both bills, LB 421 and LR 20CA, scheduled to decide whether the state will proceed, but the matter is still unsettled.
Supporters say regulation would capture lost revenue
Clouse acknowledged he is not an advocate for gambling but said regulation would allow the state to capture revenue from an activity already taking place. He added that legislative action would have given Nebraska greater control over taxation and oversight compared to a voter-led initiative.
With the legislative route unsuccessful, Clouse said the decision now rests with voters. “Now, we will live with what the voters decide,” he said. Both supporters and critics agree that any legal framework should include funding for addiction support. The proposal backed by Tax Relief Nebraska would allocate 2.5 per cent of revenues to the state’s Compulsive Gambling Fund, consistent with existing casino gambling provisions.
Debate continues over long-term fiscal impact
Despite differing views on its impact, there is some consensus that online sports betting alone will not resolve Nebraska’s broader fiscal challenges. Von Gillern noted that property tax credits already account for around 20 per cent of state spending and warned of limits to further expansion.
McGrain, however, maintains that even modest revenue gains are worthwhile. “We have to find the revenue somewhere,” he said. As debate continues, the issue is likely to remain a focal point in Nebraska’s ongoing efforts to balance tax relief with sustainable state finances.
Nebraska casinos seek voter approval
Last month, casino operators in Nebraska began circulating petitions to legalise online gambling, marking a renewed push to expand the regulated betting market after legislative efforts stalled. Backed by casino companies and major sportsbook operators, the campaign seeks to place the issue directly before voters through a ballot initiative later this year.
The initiative includes two petitions: one proposing a constitutional amendment to permit online sports betting, and a companion statutory measure outlining how the industry would be regulated. The report said organisers aim to collect hundreds of thousands of signatures by a July deadline to ensure the proposals qualify for the November ballot.
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