Online sports betting authority for Nebraska Legislature gets out of committee

Former Huskers head football coach and former U.S. Rep. Tom Osborne testifies against legislative efforts to legalize online sports wagering on Wednesday, July 31, 2024. (Zach Wendling/Nebraska Examiner)

LINCOLN — The Legislature’s General Affairs Committee took a half step Monday toward letting the public vote on the future of online sports betting in Nebraska. But the committee’s decision to punt a companion bill means any vote will likely wait until after the November election.

The amended version of Legislative Resolution 3CA stopped short of letting voters decide the issue all at once. Instead, they would be asked to give the Legislature the constitutional authority to decide the issue.

The amendment from State Sen. John Cavanaugh of Omaha, a Democrat, garnered bipartisan committee support, including from Republican State Sen. Tom Brewer, who represents north-central Nebraska. It advanced 5-3 after a final vote was added.

But the committee punted on the companion bill that would have changed the law to place constitutional amendments passed this session on the November ballot. The bill failed 4-4, meaning any public vote would occur no sooner than 2025.

Middle step sought

Cavanaugh and other senators who supported the idea during an executive session Monday said taking the middle step would give the Legislature a better chance to set the rules for such gambling rather than create rules through a petition initiative.  

Cavanaugh and State Sen. Jana Hughes of Seward said they wanted the Legislature to be able to address the issue rather than facing a well-funded effort by casino interests that could drown out needed debate.

Hughes, along with some other senators, said she wasn’t sure she supported this type of gambling but said she would rather have lawmakers be deliberate and debate whether online sports betting should be allowed and how to handle it if they do.

Another who voiced the urgency of acting now rather than waiting was State Sen. Jane Raybould. She said special interests might encourage voters to act before they fully understand the issue and how online sports gambling should be regulated and taxed.

She said letting the voters decide whether they want lawmakers to have the authority to legalize online sports betting is a good way to share the process with the people they represent. 

Gambling opponents say approach wrong

Gambling opponents, including State Sen. John Lowe of Kearney, have argued that expanded gambling is not healthy for people already in financial distress and that gambling addiction damages families and lives.

On Monday, he argued against sending the measure to the floor of the Legislature during the special session, saying it falls outside the scope of Gov. Jim Pillen’s call for property tax relief.

Other senators argued that the original sponsor of LR 3CA, State Sen. Eliot Bostar, had clearly sought to apply legalization of online sports gambling to property tax relief.

State Sen. Rick Holdcroft of Bellevue said the Legislature shouldn’t consider expanding gambling so soon after voters approved casino gambling at a handful of locations in Nebraska. 

The debate might be moot. Speaker John Arch told the Examiner on Tuesday that he has no plans to schedule the bill during the special session. He expects senators to handle the property tax bills and special session costs and go home.

“It’s up to the body,” he said. “They could end the session, or they could choose to stick around and take up other bills.” 

If the Legislature adjourns, the proposal would move to the regular session that begins in January.

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