Public testifies on bill that would increase taxes on 'skill games'
By Aaron Bonderson 
, Reporter/Producer Nebraska Public Media
Jan. 28, 2026, 6:40 p.m. ·
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On Wednesday, many gas station owners opposed a new bill that would increase the tax rate from 5% to 15% on skill games, add measures to ensure players are 21 and limit advertising. At least eight people spoke against the legislation with three supporting it.
Skill games are similar to slot machines but require some manual application, which makes them legal outside of casinos. They're often found in gas stations.
Former state Sen. John Lowe opposed the bill and urged the Revenue Committee to consider the financial impact on small businesses, which may only have one or two of these machines.
“When I look at this, you have a casino with slot machines. They may have 50, 60, 100, 200 slot machines. They can make that 15 percent,” Lowe said.
He’s referencing the 15 percentage point difference in taxes due from casinos, whose revenue is taxed at 20% across the board, including slot machines. Lowe said margins are thin for the main streams of revenue for many gas stations, grocery stores and VFWs, so these machines can supplement that income.
Gas station owners oppose the bill, saying it would financially harm small businesses.
Sen. Ashlei Spivey, who introduced LB920, said any business that would be threatened financially by losing a skill game isn’t an enterprise but a casino.
Additionally, Spivey proposed setting aside more than two-thirds of the increased tax revenue for a newly created child care subsidy fund.
“We know that child care is vitally important to economic development,” Spivey said.
In total, there are about 6,000 skill game machines in Nebraska, compared to fewer than 3,000 slots, Spivey said, making the accessibility much higher for young people. One testifier supporting the bill said he hopes the new tax rate could curb the total number of machines in the state.
One gas station operator said that her business would still operate skill games under a 15% tax rate.
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