Sports Betting, Eased Keno Restrictions Advance in Legislature

Senators in the Nebraska Legislature gave preliminary approval Wednesday to allowing sports betting at racetrack casinos, and loosening restrictions at keno parlors. The votes came despite objections they were going beyond what voters approved.

The initiative approved by voters last fall authorized “all forms of games of chance” at racetracks. The Legislature’s General Affairs Committee interpreted that to include sports betting. Wednesday, senators debated that.

“I have an attorney general’s opinion that sports betting is a game of chance – we have at least a couple of them from previous years. And when Nebraskans signed off on games of chance, they signed off on sports betting at these casinos, said Sen. Tom Briese, chair of the committee.

Sen. John Lowe objected. He pointed to an article in a gambling industry trade publication last summer. In the interview Lance Morgan, a leading backer of the petition and CEO of Ho-Chunk Inc., which is in line to run several casinos, said the initiative would not allow sports betting, although Lowe noted, he added that that could be made up for later.

“The initiative didn’t include sports wagering. They knew we would fold,” Lowe said.

Sen. Justin Wayne argued the initiative itself authorized sports betting, and the legislation is needed to put limits on it.

“If we don’t have that, they will start betting on whether Adrian Martinez will throw the next pass for a completion,” Wayne said.

Wayne said the bill prohibits so called “prop” betting on Nebraska college athletes’ individual performance in a game. But it allows betting on both professional and college games. Sen. Patty Pansing Brooks said she hadn’t understood that at first, but now she objects.

“I was told by people ‘Oh, you can bet on like, Iowa State vs. Oklahoma.’ And I was like, ‘Okay I guess that’s fine, but I still don’t like that because they’re kids.’ I didn’t know we’re betting on and against our own Nebraska team and kids. I think it’s wrong. I don’t think it’s a Nebraska spirit or Nebraska way, and I am wholeheartedly against this and unless something significant changes I will be working on filibuster from here on,” Pansing Brooks said.

Senators then voted 31-10 for an amendment authorizing sports betting. Wayne said the bill will need 33 votes for final approval.

Senators also approved an amendment making it easier to bet on keno. Currently, bets must be made in cash, and players receive paper tickets. The new proposal would allow electronic betting, and people could use apps or debit cards connected directly to their bank accounts. Sen. John Cavanaugh said the move was needed to help keno operators, and communities that depend on them for tax revenue, remain competitive when casinos begin operating.

“I don’t think it’s going to cause a huge increase in betting. I think it’ll just make the bets that are already happening just a little bit easier, a little bit safer and a little more efficient,” Cavanaugh said.

Sen. Joni Albrecht suggested easing the restrictions would increase the social costs of gambling.

“I just think it allows people to spend their money quicker, faster, and not have the money to take home to their families, could possibly lose a job because of it, could possibly lose a marriage because of it, could possibly not be able to feed their children because of it,” Albrecht said.

But Sen. Lou Ann Linehan, a longtime opponent of expanded gambling, supported the amendment.

“I don’t like gambling. I voted against it this fall when it was on the ballot. I have worked with people that have fought against this for 30 years. But we lost. We lost big. So At some point, we gotta kind of move on from here,” Linehan said.

Opponents also objected that the keno proposal had not been discussed in a public hearing. Briese promised that if the amendment were adopted, he would schedule a public hearing before the next round of debate. That prompted Sen. Steve Erdman to ask Briese about holding a public hearing first, an idea that got a frosty reception.

“If you’re going to have a hearing, would it not make sense to withdraw this bill from consideration today; have the hearing, and then bring it back after you had a hearing?” Erdman asked.

“No,” said Briese.

“Okay, and why not?” Erdman continued.

“I don’t plan on doing that,” Briese declared.

Senators voted 26-18 to adopt the amendment. Pansing Brooks objected.

“That was wrong, and I’ll tell you what: I’m not good at all the rules and messing around with everything with what’s going on with the rules. But if Sen. Chambers were here, we would be at a dead halt,” she said.

Former Sen. Ernie Chambers, a stickler for legislative rules and procedures, was forced out of office by term limits this year. The current senators voted 37-5 to give the gambling bill first round approval.