LINCOLN — Nebraska’s state revenues have taken a hit as lottery ticket sales dropped by more than 16% over the past fiscal year, leading to roughly $36 million less in sales and nearly $10 million in reduced funding for state programs. According to State Auditor Mike Foley, the decline means less money for key beneficiaries like the Nebraska Environmental Trust, education funds, and the State Fair. The Environmental Trust was impacted the most, with its lottery proceeds falling from about $24.3 million in 2024 to $20.1 million in 2025. Foley warned that the decline could continue, especially as more gambling options become available both within and outside of the state.

Officials and lawmakers attribute the slump to increased competition from new casinos and other legalized gambling forms that followed Nebraska’s 2020 vote to expand gaming. Some legislators also cited the spread of “skill games” in convenience stores as another factor cutting into lottery sales. As state programs reliant on lottery revenue face tighter budgets, lawmakers are debating how to adapt—one proposal under discussion is to legalize online sports betting, which supporters say could recapture millions in gambling revenue currently flowing to neighboring states.

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