In the wake of casino legalization and the growing influence of gambling in the sports and entertainment industry, a group of Nebraska lawmakers is urging caution. As the debate over property tax reduction enters its 14th day, the potential expansion of gambling in Nebraska has become a contentious issue, prompting 13 state senators to release a unified statement opposing the legalization of mobile gambling.

The 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—expressed their concerns, stating, “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 Rise of Mobile Gambling

Mobile wagering has surged in popularity since the U.S. Supreme Court’s 2018 decision to overturn a federal ban on sports gambling. Previously, legal sports betting was confined to Las Vegas, but now, 26 states have made mobile sportsbooks and online casinos accessible at the tap of a screen. Nebraska’s neighboring states, Iowa and Kansas, have already embraced mobile gambling, with Iowa legalizing it in 2019 and Kansas following in 2022. In these states, sportsbook apps have evolved into full-fledged mobile casinos, offering games like poker, blackjack, and roulette.

Despite this trend, Nebraska lawmakers have largely resisted the entry of mobile gaming within the state. The group of 13 senators remains committed to keeping these platforms out, citing data from the National Council on Problem Gambling. The council reports that online sports betting has increased the risk of gambling addiction by 30%, with their helpline seeing a 150% surge in calls. Moreover, 20% of college students reportedly use financial aid dollars to fund their gambling activities.

The Financial Argument for Mobile Gambling

Opponents of the senators’ stance argue that the financial benefits of mobile gambling are too significant to ignore. States that have legalized these platforms have seen substantial tax revenue gains. For example, since Iowa legalized mobile gambling in 2019, the state has recorded over $9 billion in wagers, generating $44 million in tax revenue with a 7.3% hold—the lowest rate outside of Nevada. In Louisiana, a higher hold percentage has converted $6 billion in wagers into $108 million in tax revenue.

While Nebraska has not completely shut its doors to gambling—casino licenses have been issued in several locations, including the WarHorse Casino in Lincoln and a new venue in Omaha—the 13 senators worry that the legalization of mobile gambling could be the next step, following the path of other states.

Looking Ahead

As Nebraska’s property tax debate continues, the issue of mobile gambling remains at the forefront. The stance taken by these 13 senators highlights the ongoing tension between the potential financial benefits and the social risks associated with expanding gambling in the Cornhusker State. Whether Nebraska will ultimately follow its neighbors in embracing mobile gambling or maintain its current restrictions remains to be seen.

Source:

“13 Nebraska Senators Assert Stance Against Mobile Gambling as Tax Debate Continues.” wowt.com. August 16, 2024.

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