Nebraska officials and advocacy groups are assessing the financial implications of legalizing online sports betting, as a new report outlines projected tax gains while opponents question their significance.
Research commissioned by a legalization campaign estimates the state could generate just under $87 million in tax revenue over five years. The proposal is being advanced through a petition effort aimed at placing the issue on the 2026 ballot.
Projected Revenue And Tax Relief Plans
According to the analysis by Eilers & Krejcik Gaming, about 70% of the anticipated revenue would go toward property tax credits, mirroring the structure used for casino gambling. That would translate into roughly $61 million in tax relief over the same period.
Jordan McGrain, a sponsor of the initiative, said the study was designed to show how legalization could address a key voter concern. He pointed to the state’s ongoing structural deficit and said new revenue sources deserve more attention. He also noted that signature collection is ahead of schedule.
Critics Question Scale Of Impact
Opponents argue that the projected revenue would have only a limited effect on the state’s finances. State Sen. Brad von Gillern, who leads the Legislature’s Revenue Committee, said the estimated gains would represent a small share of existing programs.
“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,” von Gillern said.
He has maintained that the expected funds would not significantly address the state’s budget deficit or reduce property tax burdens in a meaningful way. He added that the current property tax credit program in Nebraska already accounts for a substantial portion of state spending.
Critics of legalization have also raised concerns over social impacts, arguing that expanding gambling access could bring costs that outweigh the financial benefits.
Legislative Efforts And Broader Debate
Recent legislative attempts to authorize online sports betting have also reflected divided views. State Sen. Stanley Clouse introduced a proposal alongside State Sen. Eliot Bostar that would have allowed voters to weigh in while establishing a regulatory framework. That measure, Legislative Bill 421, carried an estimated revenue projection of about $70 million over four years.
Clouse acknowledged that residents already engage in gambling outside Nebraska, and said legalization could allow the state to capture some of that activity. “Now, we will live with what the voters decide,” he said.
Supporters maintain that even modest revenue could help broaden the state’s tax base. “We have to find the revenue somewhere,” McGrain said.
Clouse has also pointed to safeguards in proposed legislation, including allocating a portion of proceeds to the Compulsive Gambling Fund. Under the proposal, 2.5% of revenue would support programs for individuals facing gambling addiction.
Even among supporters, there is acknowledgment that the financial impact would be limited. Still, the issue is likely to move forward as a ballot question, leaving the final decision to voters.
Source:
“Nebraska could generate $87M in tax revenue over 5 years from online sports betting: report”, cdcgaming.com, April 27, 2026
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