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Nebraska lawmaker Senator Stanley Clouse is trying to bring sports betting to the state amid the start of a new legislative session.
Clouse has introduced Legislative Bill 421, which proposes an amendment to the Revised Statutes of Nebraska to authorise online sports betting.
The new bill proposes that the Nebraska Racetrack Gaming Act should authorise wagering in the state and that the State Racing and Gaming Commission should regulate the new form of betting. It also includes provisions that would bring changes to how tax revenue from sports wagering is distributed.
LB 421 calls for online sports betting to be connected to the state’s licenced racetracks. The licenced racetracks are required to partner with licenced sportsbooks. The state has six licensed racetracks, and each of them would be allowed to partner with a licenced sportsbook operator to offer online betting services. Each racetrack is allowed to partner with only one sportsbook.
Under the bill, authorised sportsbooks are required to pay a one-time licensing fee of $5 million. The payment can be made over a period of 5 years, with $1 million due at the date of issue.
Other provisions under the bill require 3 percent of tax revenue from sports wagering to be allocated toward the Compulsive Gamblers Assistance Fund. Another 3.5 percent will be allocated to the Gaming Commission Fund and the commission’s Cash Fund is set to receive 3.5 percent as well. The remaining 90 percent will go to the Property Tax Credit Cash Fund.
The new bill will also make changes to allow wagering on in-state colleges. LB 421 also includes an emergency clause, meaning that if the bill is passed and approved, it could take effect immediately, rather than waiting for the usual legislative timelines. Moreover, the proposal also calls for a survey of rules from other online markets to further develop a regulatory framework.
Introduction of the bill comes as Sen. Tom Brandt aims to allow in-state college betting. Brandt recently introduced Legislative Bill 63. The bill proposed amendments to the state’s Gaming Act to allow both pre-match and live betting on in-state college sporting events.
In July, Nebraska considered a proposal to legalise online sports betting, as announced by Governor Jim Pillen. The governor stated that the substantial untapped revenue is currently being lost to neighbouring states due to unregulated online gambling.
“Online sports betting is a reality in the state,” Governor Pillen declared. “Those who wish to participate are doing so, and we’re forfeiting all the revenue to our neighbours.”
Last year, Nebraska lawmakers attempted to authorise online sports betting during a special legislative session. During the special session, that lasted 17 days, Sen. Elliot Bostar introduced LR3CA. LR3CA proposed online sports betting through licensed casinos.