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Nebraska Skill Game Regulations & Compliance Guide

Skill games operate legally in Nebraska under a defined regulatory framework. Whether you manufacture, distribute or host devices, you are responsible for meeting state requirements related to licensing, certification, monitoring and taxation. This page provides a practical overview of the current rules governing skill games, which are legally defined as “cash devices” in the State of Nebraska. It is designed as a starting point for compliance and will serve as the foundation for expanded training resources.

At a Glance: Nebraska Skill Game Requirements

  • Skill games are legal in Nebraska when they meet state requirements.
  • Regulated by the Nebraska Department of Revenue (NDOR), Charitable Gaming Division.
  • Subject to licensing, device approval, central monitoring and a 5% tax on net operating revenue.
  • Local governments cannot impose additional taxes on skill game devices.
  • Operating without proper approval or licensing may result in penalties or device seizure.

Licensing Requirements: Who Needs What

Nebraska regulates skill games based on role. Requirements differ for manufacturers, distributors, and operators.

Operators / Locations

  • Per-device operator permit required.
  • Must meet the 60% non-gaming revenue requirement.
  • May operate only approved devices connected to the state monitoring system.
  • Responsible for reporting and tax compliance.

Manufacturers

  • $5,000 annual license.
  • Devices must be tested and certified as games of skill.
  • Only approved devices may be distributed for operation in Nebraska.

Distributors

  • Active NDOR license required.
  • $100 per device annually, capped at $5,000.
  • Must maintain proper licensing documentation.
  • May distribute only approved, certified devices.

Each party is independently accountable for compliance. Responsibility is not shared or transferred by contract.

Device Approval & Ongoing Compliance

Devices must meet Nebraska’s legal definition of a game of skill.

Skill Standard

  • Skill must predominate over chance.
  • Player decision-making must meaningfully affect the outcome.

Testing & Certification

  • Devices must be evaluated by an independent laboratory approved by NDOR.
  • Approved devices receive authorization for operation in Nebraska.
  • An annual NDOR decal is required for each device in service.

Operating Requirements

  • Unauthorized modifications may void approval.
  • Unapproved or uncertified machines are subject to enforcement action.

If a device does not meet the skill standard or is not properly certified, it cannot legally operate in Nebraska.

Taxes, Fees & Revenue Allocation

Nebraska imposes taxes and licensing fees on skill game activity.

Tax

  • 5% tax on net operating revenue.

Annual Fees

  • Manufacturers: $5,000 annual license.
  • Distributors: $100 per device, capped at $5,000 annually.
  • Operators: Per-device permit fees.

Revenue Distribution

Tax revenue supports:

  • Property Tax Credit Cash Fund
  • Charitable Gaming Operations Fund
  • Nebraska Tourism Commission
  • Compulsive Gamblers Assistance Fund
  • Nebraska General Fund
  • Host cities and counties

Local governments may not impose additional taxes on skill game devices. Operators and distributors are responsible for accurate reporting and timely payment.

Regulatory Authority & Governing Law

Skill games are regulated by the Nebraska Department of Revenue Charitable Gaming Division.

Regulatory authority primarily stems from:

  • Mechanical Amusement Device Tax Act
  • LB 538 (2019)
  • LB 685 (2024)
  • NDOR Chapter 54 regulations

Understanding jurisdiction is critical. Skill games are not regulated by the Nebraska Racing & Gaming Commission, which oversees casinos and sports wagering, and skill games are not classified as casino gambling under Nebraska law.

Central Monitoring & Reporting Obligations

All operating devices must connect to a state-approved central monitoring system.

The monitoring system tracks:

  • Money inserted
  • Credits played
  • Vouchers printed

The monitoring system enables:

  • Tax verification
  • Revenue reporting
  • Regulatory oversight

Failure to connect or maintain connectivity may require cessation of operations and may result in penalties.

Monitoring is mandatory, not optional.

How Nebraska’s Skill Game Framework Evolved

Nebraska law distinguishes between games of chance and games of skill. Courts have consistently recognized that when skill predominates, a device does not meet the statutory definition of illegal gambling.

Between 2016 and 2019, skill game devices expanded rapidly across the state.

In 2019, LB 538 formally defined and taxed certain devices as “cash devices,” placing them under a structured regulatory framework.

In 2024, LB 685 strengthened oversight by:

  • Imposing a 5% tax on net operating revenue
  • Requiring connection to a central monitoring system
  • Clarifying licensing and compliance requirements

Today, the industry operates under formal state regulation rather than legal ambiguity.

Why Regulatory Clarity Matters

Nebraska’s regulatory framework provides:

  • Clear operational standards
  • Defined licensing pathways
  • Structured taxation and reporting
  • Statewide consistency

The industry contributes revenue to state and local funds and supports Nebraska-owned businesses and host establishments.

As legislation continues to evolve, staying informed and unified is essential for lawful and sustainable operation.