Nebraska Lawmakers Push Back Against Mobile Gambling Expansion Amid Property Tax Debate

As Nebraska navigates the aftermath of casino legalization and the rapid ascent of gambling within the sports and entertainment sectors, a contingent of state lawmakers is advocating for a more cautious approach. The Cornhusker State, known for its conservative stance on various issues, finds itself at a crossroads as the expansion of gambling legalization surfaces as a potential solution in the ongoing debate to lower property taxes.

Lawmakers Raise Concerns Over Gambling’s Impact

On Friday, amid the 14th day of a special legislative session aimed at reducing Nebraska’s property tax rates, a group of 13 state senators issued a stark warning against further gambling expansion. The group expressed their concerns in a t statement, emphasizing the adverse effects that gambling, particularly mobile wagering, could have on Nebraska communities. The statement underscored the unfulfilled promises of property tax relief that accompanied the recent legalization of casinos in the state.

“Nebraska very recently legalized casinos largely on the promise of property tax relief that has failed to manifest itself. Expanding gambling further will inevitably lead to expanding the associated addictions and adds to more suffering in our communities. Online sports betting turns every cell phone into a 24/7 handheld gambling device, leading to new addictions,” the senators stated. This sentiment was echoed 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, who collectively issued the statement.

The debate over gambling expansion in Nebraska comes at a time when mobile wagering has seen explosive growth across the Iowa and Kansas, have legalized sportsbooks and online casinos, making mobile gambling accessible with just a tap on a smartphone.3

Iowa, Nebraska’s neighbor to the east, legalized mobile gambling in August 2019, and Kansas followed suit in the summer of 2022. The legalization of mobile gambling is not restricted to sports betting alone; in some states, popular sportsbook apps have evolved into comprehensive mobile casinos offering games like poker, blackjack, and roulette.

Despite these developments in neighboring states, Nebraska has largely resisted the incursion of the mobile gaming industry. The group of 13 senators is determined to maintain this stance, citing the detrimental effects that mobile gambling can have on individuals and communities.

Addiction Risks and Economic Arguments

The senators’ opposition to expanding gambling in Nebraska is backed by data from the National Council on Problem Gambling. According to the council, online sports betting has increased the risk of gambling addiction by 30%, with the helpline reporting a staggering 150% rise in calls related to gambling problems. The data further reveals a concerning trend among college students, 20% of whom reportedly gamble using financial aid funds.

On the other side of the debate, proponents of mobile gambling expansion point to the significant revenue generated by states that have already legalized mobile casinos and sportsbooks. For instance, since Iowa changed its laws in 2019, the state has seen over $9 billion in wagers, resulting in $44 million in tax revenue with a modest hold percentage of 7.3%—one of the lowest in the nation, second only to Nevada. Meanwhile, Louisiana, which has a higher hold percentage, has turned $6 billion in wagers into $108 million in tax revenue.

It is important to note that Nebraska is not entirely opposed to gambling. The state has issued casino licenses in various locations, including the WarHorse Casino in Lincoln, which opened in 2022, and a newly established casino in Omaha. However, the fear among the 13 senators is that the next step in the progression—mobile gambling—could follow the same trajectory as in other states, bringing with it the challenges and risks they are determined to avoid.

As the debate over property taxes continues, the future of gambling in Nebraska remains uncertain. The pushback from these lawmakers signals a strong resistance to expanding gambling, particularly in the realm of mobile wagering, despite the potential financial benefits. Whether the state will maintain its conservative approach or eventually embrace the growing trend of mobile gambling remains to be seen.

Source:

WOWY-TV