Legal Sports Betting Brief: Nebraska, North Carolina, March Madness

• Nebraska’s mobile sports betting expansion clears a major hurdle in the legislature.
• March Madness bettors beat the books, causing big Q1 losses for DraftKings and FanDuel.
• North Carolina moves to double its sports betting tax rate, eyeing major revenue gains

OMAHA, Neb. – From statehouse showdowns to bracket-busting chaos, the legal sports betting industry saw major shifts this week. Nebraska edges closer to statewide mobile betting, sportsbooks suffer March Madness losses, and North Carolina eyes a tax hike that could reshape its gaming market.

Nebraska Sports Betting Bill Advances

On Monday, Nebraska lawmakers advanced LR20CA—a constitutional amendment to expand mobile sports betting—through the first of three necessary floor votes.

The measure would allow Nebraska sportsbooks to accept wagers from anyone within state lines, not just on-site at racetracks.

It passed 27-16 and now moves to the Enrollment and Review stage. Though this is a significant milestone, two more votes are required before it reaches the governor’s desk. If ultimately approved, this could unlock statewide mobile betting access, reshaping how Nebraskans place bets.

March Madness Delivers a Blow to Sportsbooks

This year’s March Madness was a windfall for bettors. With many top seeds advancing and favorites covering spreads, sportsbooks like DraftKings and FanDuel took major hits.

JMP Securities estimates DraftKings lost $75 million in EBITDA, while Flutter (FanDuel’s parent) lost $110 million. As a result, both operators are expected to miss Q1 earnings. However, analysts remain optimistic about Q2, projecting a rebound thanks to decreased sportsbook bonuses and promotional spending and more favorable year-over-year comparisons.

While March typically boosts handle, this year’s bettor-friendly results show how variance can turn marquee events into financial flops for operators.

North Carolina Proposes Doubling Sports Betting Tax

North Carolina lawmakers are proposing to double the state’s sports betting tax rate from 18% to 36%, as part of a new two-year, $65 billion budget plan introduced this week.

If passed, the new rate would take effect on October 1, 2025, pushing the North Carolina sports betting tax policy in line with high-tax states like Pennsylvania.

The change could have netted the state over $270 million in its first year, double the actual take of $135 million. North Carolina joins New Jersey, Maryland, and Ohio in exploring similar hikes, as states with legal sports betting look to plug budget gaps and boost revenue.

News tags: DraftKings | FanDuel | March Madness | Maryland | NE LR20CA | Nebraska | New Jersey | North Carolina | Ohio | Pennsylvania