Nebraska voters have a significant decision ahead of them on November 3 as they consider the legalization of online sports betting through two proposed measures, Initiatives 440 and 441.
Financed primarily by FanDuel and DraftKings, the campaign has raised $14.65 million through September 29 and emphasizes the potential for property tax relief alongside a regulated betting environment. However, a growing opposition has emerged, gaining visibility just days before the election.
Former University of Nebraska football coach Tom Osborne has rallied numerous current and former Cornhuskers in urging voters to reject the initiatives. In a recent advertisement, State Treasurer Joey Spellerberg and State Auditor Mike Foley criticized the campaign's claims regarding tax relief, questioning the feasibility of such promises.
This opposition comes against a backdrop of a campaign known as Tax Relief Nebraska, which has collected substantial funding, reporting $14.65 million raised and $9.22 million spent as of late September, according to public filings. Both FanDuel and DraftKings made significant contributions, exceeding $7 million each.
The initiatives propose amendments to Nebraska's constitution and would create a framework for online sports betting, extending the current market, which is only available through racetrack casinos.
Osborne, alongside other figures, has put forth a letter opposing the measures, signed by 45 athletes and coaches, including football coach Ron Brown and former running back Roy Helu Jr. The letter warns against the dangers of mobile sports betting, predicting increased harassment of athletes, rampant gambling advertising, and threats to the integrity of competitions. "They see our state as another market and every phone as another casino," the statement read, emphasizing that "no student-athlete should face harassment or threats because gamblers lost money on a game."
As time runs short, the campaign draws attention to prominent Nebraska sports figures who are vocal opponents of the initiatives. Gambling with the Good Life Executive Director Pat Loontjer has also actively campaigned against the expansion.
In their advertisement, Spellerberg and Foley challenge the financial argument for legalization, alleging that the current campaign echoes the false promises made during Nebraska's 2020 casino gambling vote. Foley stated, "And our property taxes aren’t lower… Don’t believe the lies."
Interestingly, there is no consensus among state officials regarding online sports betting. Although Governor Jim Pillen has supported legalization for its potential to fund property tax relief, his office refrained from endorsing the specific ballot measures when queried recently. Spokesperson Laura Strimple stated, "The governor is going to respect the will of the voters."
The Tax Relief Nebraska campaign continues to advocate for legalization, arguing that it would capture revenue from illegal betting occurring outside Nebraska’s regulated market. Their messaging encourages voters to secure property tax relief actively. Under the current tax structure, gaming revenue is taxed at 20%, with 70% of proceeds allocated to the Property Tax Credit Cash Fund. If the initiatives are approved, revenue from online sports betting would adhere to this framework unless altered by lawmakers in the future. The campaign claims that a study they commissioned forecasts $166 million for the property tax credit fund over the next decade.
Jordan McGrain, a sponsor of the campaign and former executive director of the Nebraska Republican Party, contends that rejecting the measures would maintain the status quo and lead to revenue loss that would otherwise benefit Nebraska. He stated, "Without legalizing and regulating the marketplace… millions of dollars in revenue [will continue to] go across state lines."
At present, in-person sports betting is allowed at casinos in Nebraska, a provision passed by voters in 2020. Initiative 440 aims to amend the constitution to permit online sports betting, while Initiative 441 would create the necessary statutory framework. Sportsbooks would be required to partner with licensed racetrack casinos and operate gaming servers within the state.
Additionally, Nebraska law currently prohibits wagering on local college teams during home games and allows the Racing and Gaming Commission to implement further restrictions. Should both initiatives pass, Initiative 441 mandates that the Commission adopt the necessary regulatory changes by June 1.
