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Campaigners for the legalization of online sports betting in Nebraska insist the state is missing out on $32 million in annual tax revenue.
Senator Eliot Bostar made the claim during a debate over four sports betting bills by the state legislature’s general affairs committee. Sen. Bostar filed LR20CA, a proposed constitutional amendment that would give voters the chance to approve online wagering.
Sports betting is currently allowed only at racinos at the Cornhusker State’s six racetracks. The amendment would allow each of those locations to partner with a digital betting operator.
Sen. Bostar told the hearing: “Nebraska is currently missing out on a $1.6 billion state online industry and $32 million in annual tax revenue, which instead goes to neighboring states like Iowa, Colorado, and Kansas.”
Numerous states have legalized online sports betting in recent years and some like Texas, are getting closer. Nebraskans have proved willing to travel in an effort to place bets. Hundreds of thousands of wagers have conveniently been placed in an Iowa cornfield just across the border by Nebraska residents, according to the geo-location service GeoComply.
“People are already participating in this,” added Sen. Bostar. “Not passing this won’t stop that. I believe we should draw upon the revenue for public purposes.”
However, while there are moves to push for legalization, and evidence that the public would vote in favor, there is also clearly strong opposition to online wagering in the state. There were three submissions from proponents of legalization to the committee, and 51 from opponents.
Suggestions that revenues from online gambling could be used to reduce property taxes were dismissed by those who do not wish to see the activity legalized. No such impact has been felt in the five years since retail sports betting was permitted.
There is also concern that legalization would lead to a rise in teenage gambling. Nate Grasz, executive director of the Nebraska Family Alliance, said: “The house always wins. For the house to win, the people of Nebraska and our own children have to lose.”
Three other bills relating to state gambling law were discussed by the committee. One proposed removing the restriction on betting on college games involving the Nebraska Cornhuskers when the team is playing at home.
While the committee took no immediate action on the proposals, Sen. Bostar rated their chances of advancing at “six out of ten”.
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