Nebraska Tribe Calling For Legal Online Sports Betting

Sports betting proponents have a powerful ally in the Cornhusker State.

During an interview with Nebraska Public Media, WarHouse Casinos CEO Lynne McNally shared her support for legal online sports betting. She pointed out that the state is missing out on a significant source of tax revenue, which is currently flowing into neighboring states. That has led the Winnebago Tribe of Nebraska to begin pushing for a signature campaign to create a referendum. 

“The bottom line is, you're allowing tax money to go to Iowa, Kansas, Colorado, just like with the casinos. People are using VPNs, and they're disguising their location, pretending they're in Iowa,” McNally told NPM. 

Nebraska lawmakers have largely resisted previous sports betting bills, including a constitutional amendment proposed during the previous legislative session. While it passed out of committee and won the first unicameral vote, it was filibustered by opponents, who used the time to hammer home problem gambling statistics.

While Governor Jim Pillen has supported legalizing the industry, his influence has not been able to break legislative deadlock. That has led WarHouse to begin its campaign to circumvent lawmakers by taking the issue directly to the public.

McNally confirmed the signature gathering will begin soon, which will need support from at least 10% of registered voters to allow for a public vote.

Did Lawmakers Fumble on Sports Betting?

Many people expected Nebraska to approve a constitutional amendment last year. That was due to casino groups like WarHouse openly discussing a referendum if the effort failed. While Opponents were aware of that risk, they chose to block the effort anyway. 

This provided them with a short-term victory against the industry, but that won’t last long. With WarHouse set to begin its signature-gathering campaign, those opponents now risk being excluded from creating a sports betting market. That will control some regulations, and could lead the tribes to take a bigger cut of the profits.

Missouri saw this situation play out last year, leading voters to approve the legalization of the industry during the 2024 elections. The effort was led by pro sports teams across the state, with the support of FanDuel and DraftKings. Now, it appears Nebraska could face a similar path, handing opponents in the state legislature an avoidable loss.