As Nebraska enters a new realm of legalized casinos, the state's focus on the gambling industry continues to increase, especially with the booming sports and entertainment industries nationwide. However, some local legislators have expressed the need to slow down the expansion, particularly in online sports betting.
Intensifying debates in property tax discussions:
At a crucial meeting aimed at reducing property taxes (now in its 14th day), the topic of expanding gambling as a potential source of revenue surfaced. According to WOWY-TV, 13 state senators issued a significant statement expressing their concerns, emphasizing that it is premature to further expand the gambling industry due to unfulfilled promises: "Nebraska has recently legalized casinos mainly because of the promise to reduce property taxes, but this promise has not been fulfilled. Further expansion of the gambling industry will inevitably lead to an increase in related addictions and add to our community's suffering. Online sports betting turns every mobile phone into a 24/7 handheld gambling device, leading to new addictions."
The statement was issued by Senators John Lowe, Ray Aguilar, Joni Albrecht, Robert Clements, Robert Dover, Steve Erdman, Steve Halloran, Brian Hardin, Rick Holdcroft, Loren Lippincott, Rita Sanders, and Julie Slama, reflecting their collective stance against the uncontrolled growth of mobile gambling.
Since the U.S. Supreme Court overturned the federal ban on sports betting in 2018, the popularity of mobile gambling has soared. This shift has changed the landscape, allowing residents of 26 states to directly participate in sports betting and online casino games through their smartphones. Well-known platforms such as FanDuel and DraftKings have become synonymous with this convenient access.
Regional trends and Nebraska's cautious approach:
Neighboring Iowa legalized mobile gambling in August 2019, followed by Kansas in the summer of 2022, but Nebraska has been more conservative. Legislators have largely resisted the expansion of mobile gambling within the state, due to concerns about gambling addiction and its social impact. According to the National Council on Problem Gambling, online sports betting has increased the risk of addiction by 30%, and calls to helplines have significantly increased by 150%. Additionally, data shows that 20% of college students use their financial aid for gambling.
Those opposing the conservative stance argue that the economic benefits seen in states like Iowa justify the expansion of mobile gambling. Since 2019, Iowa's gambling wagers have exceeded $9 billion, generating $44 million in tax revenue. In contrast, states with higher hold rates like Louisiana have seen substantial returns, with $6 billion in gambling wagers generating $108 million in tax revenue.
Despite Nebraska's resistance to mobile gambling, it is not entirely opposed to gambling. Nebraska has issued several casino licenses, including the WarHorse Casino in Lincoln (opened in 2022) and a new casino in Omaha, reflecting the state's cautious attitude towards gambling expansion.
