Nebraska Report Projects $87M Revenue from Online Sports Betting Legalization

Nebraska could collect $87 million in new tax revenue over the next five years if state lawmakers approve online sports betting, according to a recent report from the boutique research firm Eilers & Krejcik Gaming (EKG).

Nebraska is one of only 20 states without a legal online sports betting market, but allows residents to place wagers in-person at retail outlets, including licensed casinos and racetracks. Five of its neighboring states (Iowa, Kansas, Colorado, Wyoming, and Missouri) have legal online markets, mounting pressure on the Cornhusker State to expand its gambling landscape and benefit from increased tax collection.

The EKG Report: $17.4 Million per Year in New State Revenue

In its March 2026 report, EKG assessed gross gaming revenue (GGR)-per-audit data from Iowa, Kentucky, Kansas, and Wyoming and adjusted its projections for Nebraska-specific factors, such as sports interest, internet access, and disposable income. GGR refers to the amount sportsbooks keep after paying out winning bets. The actual amount wagered by bettors – known as handle – is much larger, but only the operator’s profit gets taxed. 

EKG anticipates $86.1 million in GGR for Nebraska operators in year one of a potential legalized online sports betting market. Taxed at a proposed rate of 20% of taxable revenue (GGR net of deductible promotional credits and certain federal taxes) under the Legislative Resolution 20CA ballot initiative, that would be roughly $8.2 million in revenue for the state. Projections rise to $163.1 million in GGR and $25.4 million in tax revenue by year five.

The five-year timeline suggests an average of roughly $17.4 million per year in new state tax revenue from online betting taxes and fees. US operators in legal online markets contributed a record-breaking $18.1 billion in tax revenue in 2025.

The Nebraska Measure OSW Ballot Initiative: A Legal Framework for Online Sports Betting

Nebraska’s current retail sports betting market launched in 2022 after voters approved a constitutional amendment allowing wagering at licensed casinos. However, the state has not yet authorized online or mobile betting, which accounts for roughly 90% of sports betting handle in states that offer both options. By restricting betting to physical locations, Nevada is leaving significant tax revenue on the table and likely pushing players to unregulated, offshore platforms. 

Last March, the General Affairs Committee voted 6-2 to advance Legislative Resolution 20CA, introduced by Lincoln Sen. Eliot Bostar, who projected legalized online sports betting would bring in $32 million in annual tax revenue. Now, it is headed for public vote as a ballot initiative in November 2026. Wagering on Nebraska college teams, however, would still be prohibited. 

Nebraska’s debate over online betting unfolds against a backdrop of rapid expansion across the Midwest. Iowa launched mobile sports betting in 2019 and has generated hundreds of millions in handle. Kansas approved online betting in 2022, and Missouri voters recently passed a ballot measure to legalize sports wagering. 

Despite the obvious tax benefits, opponents of the measure worry about the social costs of expanded gambling access. Some lawmakers have also expressed concern about whether Nebraska’s regulatory infrastructure is prepared to oversee a complex online betting market, which requires robust geolocation technology, age verification systems, and real-time monitoring of betting patterns.

EKG’s tax revenue projection may influence these debates, but it is unlikely to settle them. States that have legalized online betting often see lower-than-expected tax collections in early years as operators spend heavily on customer acquisition and promotional offers.