Commission warns mobile wagering could challenge Nebraska racing; officials consider outreach to BetMGM, TwinSpires

Dennis Lee told the Senate committee that mobile wagering is a significant challenge for Nebraska’s racing industry and that the Racing and Gaming Commission is considering proactive outreach to mobile platforms.

"In my view, mobile wagering is a major negative hurdle for, collectively, our industry right now," Lee said, noting that wagering via mobile platforms draws money away from in-state casinos and tracks. He said the commission is preparing for the possibility a voter initiative in November would authorize mobile wagering and that, if approved, the Legislature and governor would have roles in subsequent rulemaking.

As part of a proactive posture, Lee said the commission has discussed sending letters to operators such as BetMGM and TwinSpires to inform them that Nebraska may regulate mobile platforms and to ask whether they accepted wagers from Nebraskans prior to applying for in-state authorization. Lee acknowledged such letters would have limited enforcement power: "We don't have any teeth, admittedly, to that letter" but he said the outreach might cause platforms to pause accepting wagers from Nebraska pending any formal approvals.

Lee linked the mobile-wagering issue to broader regulatory concerns, noting national trends such as predictive markets and heavy advertising during major sporting events. He recommended the commission prepare rules and applications that would require mobile platforms affiliated with licensed Nebraska casinos to disclose prior acceptance of Nebraska wagers as part of any application.

The committee did not make policy decisions at the hearing; Lee said the commission would act if and when the voter initiative and subsequent legislative or executive action authorize mobile wagering.