Nebraska Voters to Decide Fate of Mobile Sports Betting

Key Points Nebraska voters will decide on November 3 whether to legalize mobile sports betting Two ballot measures could allow up to 12 sportsbook operators Opponents warn of gambling-related harm, aggressive advertising and risks to college athletes

Key Points

Nebraska voters will decide on November 3 whether to legalize mobile sports betting

Two ballot measures could allow up to 12 sportsbook operators

Opponents warn of gambling-related harm, aggressive advertising and risks to college athletes

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

voters

DraftKings

FanDuel

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.

Tax Relief Nebraska

two related ballot measures

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.

FanDuel

DraftKings

FanDuel

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.

Fanatics

BetMGM

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.

Tax Relief Nebraska

$15.8 million

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.

amend the state constitution

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.

allow up to 12 operators

Companies including DraftKings, FanDuel, BetMGM and Fanatics are expected to eye the market. Caesars, bet365 and theScore Bet may also look for opportunities.

DraftKings

FanDuel

BetMGM

Fanatics

Caesars

bet365

theScore

Bet

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.

20% tax

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.

The Nebraska Racing and Gaming Commission

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.

projected about $86.6 million

gross gaming revenue

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.

Save Nebraska Sports

Tom Osborne

Mike Foley

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.

gambling-related harm

younger audiences

pressure on college athletes

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.

Mobile wagering

prohibit wagers on Nebraska college teams

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.

Nebraska Family Alliance

If both measures pass, Nebraska would become the 33rd US state to legalize mobile sports betting.

33rd US state

nebraska

north america

sports

usa