Could online sports betting help homeowners in Nebraska reduce their property taxes? State government officials think so.
Nebraska is one of six states that have legal live sports betting but have yet to regulate online sports betting. That could change in the future, pending upcoming discussions by the Nebraska Legislature.
The Legislature will hold a special session on Thursday, July 25, to discuss ways of reducing property taxes for homeowners. Online sports betting is expected to be offered as an option.
Key Highlights
- Governor Pillen seeks to cut Nebraska property taxes in half.
- Nebraska Legislature will consider online sports betting during Thursday’s special session to find ways to reduce taxes.
- Online sports betting revenues would provide approximately $30 million annually in tax revenue.
Special Session Will Discuss Governor’s Plan for Tax Cuts
A special session of the Nebraska Legislature will convene on Thursday to examine ways to reduce homeowner property taxes. State residents paid nearly $5.3 billion in property taxes last year. Governor Jim Pillen (R) is working to ease the burden of taxpayers and requested a special session for lawmakers to come up with solutions.
One potential option that will be considered is online sports betting. Nebraska voters approved a ballot referendum in 2020 that legalized commercial racetrack casinos and legalized retail sports betting. However, online sports betting remains illegal in the Cornhusker State.
Governor Pillen has clarified that he does not support further gambling expansions. However, if lawmakers believe that expansion is a viable option to help taxpayers, he has agreed to put his opinions aside and consider alternatives.
According to a report from KETV, Pillen’s plan to reduce property taxes seeks to cut them by half statewide. This requires lawmakers to raise $1.8 billion in funding.
Online Sports Betting Could Bring $30 Million in Taxes
If Nebraska were to legalize online sports betting, approximately $30 million in tax revenue would be collected. That’s about 1.875% of the money needed to implement Pillen’s plan. While that money may be a small portion of what is required, casinos and lawmakers agree that it is a viable option to retain bettors who would otherwise go elsewhere to bet.
State Senator Terrell McKinney (D) points out that Nebraskans are going to Iowa to place legal online bets. He calls that money “missed revenue that we’re missing out on because we want to be the nanny state.”
Lance Morgan, CEO of Ho-Chunk, Inc., points out that online sports betting revenue is not just a temporary fix but part of a viable permanent solution. He states, “It’s addictive. It’s not a tax shift. And so we think that’s a pretty viable option. And we’ve been proposing that to be part of this special session.”
Ho-Chunk owns War Horse Casinos in South Sioux City, Lincoln, and Omaha. It has been working with lawmakers to provide information on online sports betting and polling casino patrons on the matter. According to Morgan, “We did a poll, and 65% of Nebraskans support it.”
It’s addictive. It’s not a tax shift.
– Lance Morgan | CEO, Ho-Chunk Inc.
And so we think that’s a pretty viable option.
Gambling Expansion Will Require a Referendum
While lawmakers are expected to seriously consider online sports betting, this is far from guaranteed. For starters, the measure must have at least 60% support from the Legislature to move forward from the special session to voters.
The Nebraska Legislature is currently republican controlled, and conservatives have been slow to advance gambling measures in the past.
Next, voters must vote in a statewide ballot referendum to amend the Nebraska Constitution to allow the activity. While only a simple majority is needed, ballot referendums can only be considered in even-numbered years. If the measure moves to a vote, it will not appear on a ballot until at least 2026.
While such a measure would not help taxpayers for the next couple of years, it could be considered a long-term addition to any tax reduction plans.
Sources
https://www.ketv.com/article/nebraska-considers-mobile-sports-betting-potential-source-of-property-tax-relief/61585708
https://governor.nebraska.gov/nebraska-property-tax-plan
https://www.casino.org/news/nebraska-legislature-to-mull-online-sports-betting-ease-taxes/
