The push to legalize online sports betting in Nebraska is intensifying as the Nov. 3 election approaches, with the campaign raising $14.65 million. Much of the outcome may depend on voters' perception of how this initiative ties into property tax relief.
Major players like FanDuel and DraftKings are heavily backing this effort, contributing over $3.5 million each recently to the cause. This fundraising campaign, spearheaded by Tax Relief Nebraska, aims to persuade the electorate that online betting is a viable solution for alleviating property tax burdens. Legislative attempts to legalize online sports betting have faltered in recent years, prompting advocates to gather over 350,000 petition signatures before the July 2 deadline to place the issue on the November ballot.
Currently, sports betting in Nebraska is limited to in-person wagers at casinos, a system established after a broad measure to legalize casino gambling passed with 65% support in a November 2020 vote.
Industry experts indicate the potential for closer margins in this ballot initiative against a backdrop of increasing resistance to online gambling across the country. Brendan Bussmann, managing partner at B Global Advisors, stated that public opinion will hinge on the perceived connection between online sports betting and property tax benefits. “This is going to come down to how much Nebraskans believe they get in property tax relief, and if sports betting is the panacea for it,” Bussmann said.
For voters, the ballot will include two measures that must both pass for online sports betting to be legalized. Initiative 440 proposes an amendment to the state constitution, allowing sports wagering conducted online by residents through licensed operators at racetracks. Meanwhile, Initiative 441 details the statutory framework for implementation.
If approved, each of Nebraska's five racetrack casinos could host betting via no more than two digital platforms, with WarHorse Casino leading the charge by constructing a sixth facility. The tax on sports betting would mirror the existing 20% rate for casino gambling while maintaining current restrictions on college betting and prohibiting bets involving athletes under 18.
Public hearings for these measures will take place on Oct. 22 in Kearney and on Oct. 24 in Omaha, followed by a session at the Capitol in Lincoln on the same Thursday.
The necessity of a ballot measure arose after multiple legislative attempts failed in 2024 and 2025, despite support from Governor Jim Pillen and calls from Senator Eliot Bostar to prioritize online betting as a means of providing property tax relief. Bostar withdrew his 2025 bill when it became clear there weren’t enough votes to support it. Some lawmakers raised concerns, including Senator John Cavanaugh, who said, "I’ve got a lot of heartburn about mobile sports betting, but if we don’t do this, they will put it on the ballot. And it will be more expansive than this."
Tax Relief Nebraska has pointed to projections from Eilers & Krejcik Gaming estimating that online sports betting could yield nearly $87 million in new state tax revenue over five years, with around $61 million earmarked for property tax credits. However, critics argue that this amount is insufficient, with Senator Brad von Gillern noting it would represent about 1% of the state's property tax relief program. "If people are voting for the online gambling initiative believing that it’s going to substantially change their property tax bill, they’re going to be sadly disappointed," von Gillern remarked.
State Treasurer Joey Spellerberg highlighted that generating the $87 million in revenue would necessitate Nebraskans losing over $435 million in bets. State Auditor Mike Foley accused proponents of misleading voters regarding potential property tax relief benefits.
Support for legalizing online sports betting in Nebraska is heavily funded by FanDuel and DraftKings, with each company contributing an additional $3.5 million recently, bringing their total contributions to over $7 million so far in this election cycle. The Tax Relief Nebraska committee reported a total of $7.25 million raised during this period and held $5.43 million in cash as of Sept. 29.
Other financial backers include Roar Digital (the parent company of BetMGM), which contributed $250,000 after an earlier donation of the same amount, and Fanatics, with a total of $75,000.
On the opposing side, Save Nebraska Sports, which cannot match the financial muscle of its rivals, is counting on public figures and credibility to rally opposition. Nebraska Public Media reported that Ron Brown, an assistant football coach at the University of Nebraska, joined spokespersons at a campaign launch, emphasizing credibility. The coalition also referenced a statement from former football coach Tom Osborne, who criticized online betting as turning athletics into gambling for profit.
The experiences in Missouri from a previous campaign to legalize online sports betting reveal the challenges of mounting opposition against well-funded initiatives. In 2024, DraftKings and FanDuel managed a $43 million campaign that ultimately passed by a slim margin despite significant opposing financial influence.
In contrast, Nebraska is witnessing no major operators funding opposition efforts.
