Nebraska Considers Mobile Sports Betting For Property Tax Relief

Nebraska is considering a proposal, which would provide an additional $30 million a year for property tax relief if residents are allowed to engage in sports betting via phones or mobile devices. Gamblers and gaming officials are urging the governor and lawmakers to consider this option when they reconvene for a special session on July 25.

Approximately 65% of Nebraska residents are in favor of mobile sports betting for property tax relief

“It’s additive. 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,” said Lance Morgan of Ho Chunk Inc.

Ho Chunk Inc. operates War Horse Casinos in Lincoln, Omaha, and South Sioux City. Morgan added that more than half of Nebraska residents support the plan.

“We did a poll and 65% of the Nebraskans support it,” Morgan said.

In order to place a constitutional amendment on the November ballot allowing voters to decide on mobile sports betting, 30 votes from lawmakers would be required.

The revenues from this initiative would be directed towards property tax relief.

In 2023, Nebraska levied $5.3 billion in property taxes. Income taxes contributed $3.6 billion and state sales taxes totaled $2.3 billion.

Gov. Jim Pillen, Sen. Terrell McKinney support the measure

During a recent interview with KETV, state Sen. Terrell McKinney voiced his approval, revealing that Nebraskans are currently crossing into Iowa, where mobile sports betting is legal, to place bets.

“Missed revenue that we’re missing out on because we want to be the ‘nanny state,'” McKinney said.

Gov. Jim Pillen also expressed his support for the initiative. Despite his personal disapproval of online sports betting, he admitted that Nebraska is missing out on generating additional revenue.

Pillen is seeking property taxes to be cut in half, a goal that would require about $1.8 billion. In his town halls, Pillen has called for spending cuts through efficiencies, sin tax increases, and broadening the tax base.

His plan would cut the amount levied for property taxes to about $2.7 billion, while sales tax revenues could potentially increase to $4 billion. This is assuming that the state relies on sales taxes alone to pay the cost of the plan.

“Considering the other options that have been floated around in the news. I certainly think that this is a much more palatable way to raise money,” said Lynne McNally.

The special session provides lawmakers with an opportunity to let voters decide on the issue.

“We would not have another opportunity until November of 2026,” McNally said.

Families would end up paying sales tax on such currently tax-free items, including car repairs and home maintenance

Furthermore, the plan would provide the governor with another option for property tax relief.

“I don’t think he necessarily supports gambling per se, but he does support property tax relief and finding innovative ways to do it,” Morgan said.

However, families could end up paying sales tax on such currently tax-free items, including car repairs, home maintenance, haircuts, veterinary care for pets, zoo visits, residential water service, soda and candy, cemetery plots, and lottery tickets.

Those are among the more than 120 types of goods and services now exempt from sales taxes in Nebraska.

If Nebraska eliminated all exemptions, the state could collect another $6.5 billion in sales taxes, per estimates by the State Department of Revenue.

If Pillen’s plan is approved, the result would be the largest property tax cut in Nebraska’s history.