General Affairs Committee
February 10, 2025
Committee Chair: Sen. Rick Holdcroft | Bills Heard: 3 | Full Transcript (PDF)
LB280: Require casinos to submit annual audits to the Auditor of Public Accounts for review of gaming tax calculations
Introduced by: Sen. Brad von Gillern | Testimony: 3 proponents, 2 opponents, 0 neutral | Read bill text (PDF)
State Auditor seeks independent review of Nebraska casino gaming taxes as revenues surge. LB280 would require casinos to submit annual audits to the Auditor of Public Accounts for verification that the state is collecting the full 20% gaming tax owed. Gaming revenues jumped to $29 million in 2024 and $18 million in January 2025 alone, with 70% dedicated to property tax relief.
Why it matters: Casinos already undergo audits per Racing and Gaming Commission rules. The bill simply routes those reports to the Auditor's office, which testified it has expertise the commission lacks. But casinos argue this creates a "triple audit" burden and disputed a prior error attributed to the Auditor, not the industry.
What they're saying: - Proponents: "Trust but verify." The Auditor's office has specialized financial expertise and will deter improper conduct. A prior $20 million discrepancy shows the commission can't handle this alone. - Opponents: The Auditor mischaracterized a prior error—it was the Auditor's mistake on food and beverage tax calculation, not casino underpayment. This adds unnecessary cost ($250,000 per fiscal note) and burden when casinos already pay for two audits.
By the numbers: Gaming tax revenue: $29 million (2024), $18 million (January 2025). Auditor's estimated cost: $2,500. Commission's fiscal note: $250,000.
What's next: No vote was taken. The bill remains in committee.
Committee sentiment: Skeptical: Sen. John Cavanaugh Unclear: Sen. Barry DeKay, Sen. Stan Clouse
Sentiment estimated from questions and comments — not stated positions.
LB60: Allow Nebraska Lottery tickets to be sold through age-restricted vending machines
Introduced by: Sen. Dan Quick | Testimony: 3 proponents, 3 opponents, 1 neutral | Read bill text (PDF)
Nebraska considers joining 43 states allowing lottery ticket vending machines, but committee skeptical about age safeguards. LB60 would permit age-restricted vending machines to sell scratch tickets and draw games like Powerball. Nebraska is one of only two states with lotteries lacking this option. Retailers support the change to ease staffing pressures; opponents worry it removes human oversight and targets the poor.
Why it matters: Lottery revenues fund education, the State Fair, and gambling assistance programs. Vending machines could generate $800,000-$1 million annually from an estimated 50 new locations. But the bill lacks statutory safeguards on machine placement, credit card acceptance, and penalties for retailers who fail to prevent underage purchases.
What they're saying: - Proponents: Machines reduce labor costs and customer wait times. Age verification is automatic via barcode scanning. Forty-three other states use vending machines without major underage access problems. - Opponents: Florida found 13- and 14-year-olds successfully buying tickets from machines. The bill should require line-of-sight placement, remote kill switches, cash limits, and penalties—not leave these to the Lottery Department. Vending makes gambling easier for the poor, who buy more than half of all lottery tickets.
By the numbers: 45 states have lotteries; 43 allow vending. Nebraska and North Carolina are the only two without vending. Estimated new sales: $3-4 million annually. Estimated beneficiary revenue: $800,000-$1 million.
What's next: No vote was taken. Committee members raised concerns about statutory safeguards. Bill remains in committee.
Committee sentiment: Skeptical: Sen. Stan Clouse, Sen. Victor Rountree, Sen. Jared Storm Unclear: Sen. Barry DeKay, Sen. Bob Andersen, Sen. John Cavanaugh
Sentiment estimated from questions and comments — not stated positions.
LB635: Authorize regulation of professional bare-knuckle MMA, amateur kickboxing, slap fighting, MMA on ice, and Muay Thai
Introduced by: Sen. Ben Hansen | Testimony: 4 proponents, 0 opponents, 0 neutral | Read bill text (PDF)
Nebraska poised to legalize five emerging combat sports, positioning state as leader in alternative athletics. LB635 authorizes the Athletic Commission to regulate professional bare-knuckle MMA, amateur kickboxing, slap fighting, MMA on ice, and Muay Thai (via amendment). The bill applies to athletes 16 and older and does not affect high school, college, or military competition. All sports would be subject to existing Athletic Commission safety protocols.
Why it matters: Bare-knuckle MMA is legal in 30+ states; Muay Thai is a $1.5 billion U.S. industry with 1,700+ training centers and potential 2026 Olympic inclusion. Legalization attracts events, tourism revenue, and allows Nebraska athletes currently training out of state to compete at home. It also protects promoters from mutual combat charges.
What they're saying: - Proponents: These are heavily regulated sports with extensive safety protocols—physician oversight, medical evaluations, suspension procedures for injuries, and inter-state fighter registries. Nebraska athletes travel monthly to Minnesota, Iowa, and Colorado to compete; legalization brings events home. Muay Thai world championship in Des Moines drew 1,000+ athletes and $1 million+ in prizes. - No opponents testified.
By the numbers: Bare-knuckle MMA: legal in 30+ states. Muay Thai: 1,700+ U.S. training centers, $1.5 billion industry. Slap fighting: legal in Nevada, Colorado, Texas, Florida, Oklahoma. Concussion suspension: minimum 30 days, with medical clearance required to lift.
What's next: No vote was taken. Committee received 4 proponent letters, no opponents, no neutral testimony. Bill remains in committee.
Committee sentiment: Supportive: Sen. John Cavanaugh Unclear: Sen. Stan Clouse, Sen. Bob Andersen, Sen. Barry DeKay, Sen. Jared Storm, Sen. Dan Quick, Sen. Victor Rountree
Sentiment estimated from questions and comments — not stated positions.
Session Notes
Committee Chair Rick Holdcroft opened with procedural instructions regarding testifier sheets, time limits (3-minute green light system with yellow at 1 minute remaining and red at time), and written position submission deadlines (8 a.m. day of hearing via nebraskalegislature.gov). Committee members present: Sen. Bob Andersen (District 49), Sen. Barry DeKay (District 40), Sen. John Cavanaugh (District 9, Vice Chair), Sen. Dan Quick (District 35), Sen. Stan Clouse (District 37), Sen. Victor Rountree (Sarpy County), Sen. Jared Storm (District 23). Committee staff: Micah Chaffee (research analyst), Barb Dorn (clerk). Pages: Tate Smith (UNL junior, political science) and Arvra Rishi (UNL junior, political science). No votes were taken on any bills. All three bills remain in committee for further consideration.
Generated by NE Wire Service | Source: Nebraska Legislature Transcribers Office This is an AI-generated summary. Verify all claims against the official transcript.