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The Nebraska Department of Health and Human Services (DHHS) has announced that it has successfully recouped $200,000 in child support from gambling wins.
The new system, via the Gambling Winnings Setoff for Outstanding Debt Act, has been in place since September 2025 as part of a new state drive to use registered winnings as a form of support for children.
DHHS recoups $200k in child support from gambling wins
Governor Jim Pillen signed the act into law after a legislative bill, LB1317, progressed through the state’s internal processes and public consultation.
The Nebraska Department of Revenue (DOR) then issued a statement outlining the process going forward, placing the onus on gambling operators and entertainment venues to enforce the new act.
The letter stated that any gambling location must check the “Winnings and Gambling Earnings Recovery (WAGER) database to determine if there is a debt or an outstanding state tax liability owed by a winner prior to making a winnings payout of casino winnings, parimutuel winnings, or sports wagering winnings.”
WAGER system to control gambling deductions
The WAGER system is to be used by gambling locations and operators to report earnings and the correct amount of deductions when a registered gambler has outstanding debts.
“By administering these dollars directly to families, the Child Support Enforcement Program is setting our state’s children up for success,” said Shannon Grotrian, director of the Office of Economic Assistance. “It’s making an immediate impact on their livelihoods and ensuring they have what they need to grow and thrive.”
An “operator must deduct the amount of debt and outstanding state tax liability identified in the WAGER database from the winnings and remit the amount deducted to the Nebraska Department of Revenue (DOR) through WAGER,” said the September 2 letter.
Pilen said in a recent release supporting the act, “This program ensures funds are being used to help support kids across Nebraska. Parents have an obligation to their children, and we’re guaranteeing their well-being by collecting these winnings.”
Within the first thirteen weeks of the act being in effect $529,091.47 was distributed to state agencies, including the DOR, Department of Labor (DOL), Department of Motor Vehicles (DMV), and DHHS.
Featured image: DHHS official
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