Nebraska’s ongoing debate over online sports betting is set to shift from the legislature to the ballot box. Following repeated failures in the state Senate to pass legalization measures, casino operators and advocacy groups are preparing a signature campaign that could place the issue directly before voters in the 2026 general election.

The proposed referendum would amend Nebraska’s constitution to authorize licensed racetracks to operate mobile betting platforms. Supporters say this approach is necessary after lawmakers were unable to advance legislation earlier in the year, despite growing demand from residents who are already crossing state lines or turning to unregulated markets to place wagers.

Legislative Efforts Stalled by Filibuster

Attempts to pass legalization through the Nebraska Senate made some headway in 2025 before collapsing under procedural hurdles. Senator Eliot Bostar (D-29) introduced LR20CA, a constitutional amendment resolution that would have paved the way for mobile wagering. The measure cleared the Senate General Affairs Committee on a 6-2 vote in March and won initial floor approval in April with a 27-16 majority.

But Nebraska’s unicameral system requires three separate rounds of debate, each with a two-thirds majority, before a constitutional amendment can advance. Opponents launched a filibuster that blocked further progress. That setback marked the latest in a series of failed efforts to bring mobile sports betting to the state.

Bostar stressed that legislative action would give senators more influence over regulation than a voter-led petition. “The landscape is changing. If residents want to bet legally and safely here in Nebraska, we need to give them that option,” he said. Sen. John Cavanaugh (D-9), while admitting legalization gave him “heartburn,” agreed that the legislature should maintain oversight rather than cede authority entirely to the ballot process.

With the legislature gridlocked, industry leaders and advocates are turning to a referendum. To qualify, organizers must collect signatures from 10% of registered voters — roughly 125,786 certified names based on Nebraska’s current voter rolls. Collection efforts are expected to begin within weeks.

According to Nebraska Public Media, supporters include WarHorse Gaming and the Nebraska Horsemen’s Benevolent and Protective Association. Lynne McNally of WarHorse Casinos, which operates properties in Omaha and Lincoln, warned that Nebraska is losing tax dollars to neighboring states. “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,” she said.

Backers estimate legalization could generate about $32 million in additional tax revenue over two and a half years, which they argue could be directed toward property tax relief or other state programs.

Critics Highlight Social Concerns

Not everyone is convinced. Opponents of expansion argue that making betting available via cellphones would heighten risks of gambling addiction, particularly among younger men. They also questioned whether projected revenues would deliver the kind of meaningful property tax relief that supporters have promised.

Governor Jim Pillen has not directly weighed in on the petition plan but has generally taken a cautious stance on gambling expansion. The debate echoes recent developments in Missouri, where professional sports franchises bypassed legislative hurdles in 2024 by backing a successful ballot initiative.

Currently, Nebraska allows only in-person sports betting at licensed casinos, taxed at 20%. For advocates, mobile wagering represents both a modernization of gambling laws and a chance to keep residents’ spending within the state. For opponents, it raises unresolved questions about addiction, regulation, and long-term community impacts.

If enough signatures are gathered and voters approve the referendum, online sports betting could launch in Nebraska as early as 2027. The decision would represent a significant expansion of gambling in the state, marking the first time residents could legally wager from their phones without traveling to casinos or across state borders.