Nebraska voters reject online sports betting ballot measures

Nebraska voters have rejected two ballot measures that would have legalized statewide online sports betting. Initiatives 440 and 441 were defeated, keeping sports wagering limited to in-person bets at licensed racetrack casinos. Unofficial results with roughly 90 per cent of votes counted showed about 55 per cent voted against both measures. The proposals would have allowed licensed racetrack casino operators to offer online sports betting under a regulated framework.

The campaign to pass the measures, led by the group Tax Relief Nebraska, argued that Nebraska was losing potential tax revenue to offshore gambling websites and to neighbouring states like Iowa. The group claimed legalizing mobile sports betting could have generated US$238 million in tax relief over 10 years. Under the proposed framework, online sports betting would have been subject to a 20 per cent tax, with 70 per cent of the proceeds allocated to property tax relief. "Voters in Nebraska looked right past that," said State Treasurer Joey Spellerberg, referring to the advertised tax benefits, during his victory speech. Spellerberg was part of the opposition coalition called Save Nebraska Sports, which argued the legislation was “seeking to make a profit at the expense of Nebraska families, businesses, fans and student athletes.” Opponents contended that making betting available on mobile devices would increase gambling-related harm and that the projected fiscal benefits were too small to justify the expansion.

The pro-legalisation campaign was heavily funded by major U.S. sportsbook operators. DraftKings and FanDuel each contributed more than US$10 million to the effort, with BetMGM and Fanatics also providing financial backing. In total, more than US$21 million was poured into the campaign via Tax Relief Nebraska. Despite the spending, the campaign faced strong opposition from a coalition that included 45 current and former University of Nebraska Cornhuskers athletes and coaches, as well as State Auditor Mike Foley.

Initiative 440 would have amended the state constitution to allow lawmakers to authorize online sports wagering, while Initiative 441 would have legalized and regulated it under state law. The proposed market would have allowed for 12 licensed online sportsbooks, requiring them to partner with a Nebraska racetrack casino. Analysts from Eilers & Krejcik Gaming estimated the market could have generated up to US$86.1 million in gross gaming revenue in its first year, delivering roughly US$8.2 million in state revenue. The repeated failure of online sports betting bills in the Nebraska Legislature prompted the petition drive to put the issue directly to voters. The defeat means sports betting in Nebraska will remain limited to the in-person wagering that was authorized at the state's five racetracks following a 2020 ballot measure.