Nebraska Voters to Decide Fate of Mobile Sports Betting

Nebraska voters will decide on November 3 whether to legalize statewide mobile sports betting, ending a campaign that has attracted more than $22.5 million in contributions. DraftKings and FanDuel have contributed the bulk of the money, donating about $10.4 million each to back the proposed changes. Nebraska Sports Betting Vote Draws Massive Industry Funding The money went to Tax Relief Nebraska, which is backing two related ballot measures. The latest campaign finance disclosures show the fundraising effort picked up in October, with sportsbook operators pouring more money into the effort in the lead-up to Election Day, as reported by Covers. FanDuel and DraftKings each added $3.5 million in September, bringing their total contributions to about $14 million at that time. Then they threw in millions more, with DraftKings ponying up $2.5 million on October 13 and FanDuel doing the same on October 22. The two companies shelled out another $750,000. Fanatics has also backed the campaign, donating a total of $600,000, and BetMGM previously gave $500,000. Tax Relief Nebraska has spent approximately $15.8 million on its campaign for the election. More than $5 million was spent on television advertising and other promotional activities. Initiative 440 and Initiative 441 are on the November 3 ballot. Both need to be approved by voters for Nebraska to have mobile sports betting statewide. Initiative 440 would amend the state constitution to permit the legislature to allow online sports betting. Initiative 441 would set the regulatory framework for the new market. Under the proposed system, each of Nebraska’s six regulated gaming facilities, existing or planned, may partner with up to two online sportsbook platforms. That would allow up to 12 operators, though the state may not have enough applicants to fill all the slots. Companies including DraftKings, FanDuel, BetMGM and Fanatics are expected to eye the market. Caesars, bet365 and theScore Bet may also look for opportunities. Nebraska Betting Measures Include 20% Tax and College Wagering Ban The plan would impose a 20% tax on gross gaming revenues. 70% of the tax revenue created would go toward property tax relief. Supporters also have pointed to the additional money for local communities as another plus. If approved, the constitutional reforms will take effect on January 1, 2027. The Nebraska Racing and Gaming Commission would have until June 1, 2027, to set up the rules, potentially allowing sportsbooks to open later that year. Earlier industry estimates had projected about $86.6 million in the first year of market gross gaming revenue. However, these projections are contingent on actual betting activity and do not guarantee future tax collections. An effort to legalize sports betting has received pushback from Save Nebraska Sports, a group that includes former Cornhuskers football coach Tom Osborne, state Auditor Mike Foley and state Treasurer Joey Spellerberg. Opponents say mobile wagering could lead to more gambling-related harm, expose younger audiences to aggressive advertising and put more pressure on college athletes. They also wonder whether the promised property tax benefits would outweigh the possible social costs. Nebraska already allows retail sports betting at licensed racetrack casinos. Mobile wagering, however, is still banned, leading some residents to bet in neighboring states like Iowa. The proposed framework would still prohibit wagers on Nebraska college teams when they are playing in-state. The early stages of the campaign indicated that sportsbook operators had already invested millions of dollars to get on the ballot and campaign for legalization. Meanwhile, the Nebraska Family Alliance also emerged as a major opponent. If both measures pass, Nebraska would become the 33rd US state to legalize mobile sports betting.