Bill to allow progressive jackpot games heard, advanced from committee

Members of the General Affairs Committee heard testimony Feb. 23 on a bill that seeks to provide an additional gaming option for authorized organizations in the state.

LB1120, introduced by Blair Sen. Ben Hansen, would amend the Nebraska Lottery and Raffle Act and the Small Lottery and Raffle Act to allow a licensed organization to conduct a lottery or raffle game with a progressive jackpot or multiple drawing dates, such as Queen of Hearts. Tickets to such games could be sold through a vending or dispensing device.

The measure would require a licensee to register each lottery or raffle game with the state Department of Revenue and post the rules in a visible location where the game is conducted or tickets are sold. At least 50% of the gross proceeds from such games must be used for prizes.

The department would be authorized to establish rules and regulations to carry out provisions of the bill.

Hansen said progressive jackpot games often are used to fund various community projects, including food pantries, disaster relief, scholarships and school programming.

“Nebraska is proud of its tight-knit, Midwestern communities and the values that inspire families and friends to … support each other locally,” he said. “These fundraising efforts are opportunities for whole towns to come together and build their community.”

Russ Cook of the American Legion supported the measure, saying many nonprofit and veterans organizations rely on donations, small fundraising and volunteer labor to keep their doors open. He said the measure would permit another source of revenue to allow organizations to continue providing important services to community members.

“When the costs rise, something has to give,” Cook said. “Sometimes that means fewer community programs, fewer outreach events for veterans, fewer resources for families and in the worst cases, [organizations] have to close.”

Proponent Jeffrey Baker of the Veterans of Foreign Wars echoed those sentiments, saying the updated raffle format proposed in LB1120 has proven to be a “lifeline” for organizations in other states.

Nebraska has always prided itself on local community involvement, he said, and the proposal would reinforce that tradition by giving organizations the necessary flexibility to thrive in today’s world.

“The bill simply modernizes outdated statutory language so community groups can utilize tools that have already proven successful and safe in other states,” Baker said. “This isn’t an expansion of gambling, this is an expansion of opportunity.”

No one testified in opposition to the proposal. Following the hearing, the committee voted 8-0 to advance LB1120 to general file.