The campaign to legalize online Nebraska sports betting is heading into the last three weeks before the Nov. 3 election after raising $14.65m to support its efforts, but it could all come down to how voters closely connect the issue with property tax relief.
FanDuel and DraftKings continue to fund the ballot campaign to legalize online Nebraska sports betting, recently each adding more than $3.5m to its coffers.
The committee behind the effort, Tax Relief Nebraska, works to convince voters that online betting is a good vehicle for property tax relief. Lawmakers were not convinced, as legislative efforts stalled out the past few sessions. Tax Relief Nebraska turned in more than 350,000 petition signatures ahead of the July 2 deadline to qualify the measure for the November ballot.
Nebraska sports betting is currently limited to in-person at casinos. That market launched in 2023 after voters approved a broader casino gambling measure at the polls in November 2020 with 65% of the vote.
Industry sources suggest this ballot push could be closer as headwinds grow against online gambling in the U.S.
Brendan Bussmann, managing partner at B Global Advisors, told SBC Americas that it will come down to how much voters see the connection between online sports betting and potential tax benefit.
“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,” Bussman said.
The Nebraska Secretary of State will hold public hearings on the two online Nebraska sports betting ballot measures on Thursday at the Capitol in Lincoln, Oct. 22 in Kearney, and Oct. 24 in Omaha.
What Nebraska sports betting ballot measures do
Nebraska voters will see two measures, and both have to pass to take effect:
- Initiative 440 would amend the state constitution to allow online sports wagering by people located in Nebraska, through an authorized gaming operator at a licensed racetrack.
- Initiative 441 sets out the statute, according to the Nebraska Secretary of State‘s voter pamphlet.
Under 441, each of the state’s five racetrack casinos could offer betting through no more than two online platforms. WarHorse Casino, which leads the online sports betting effort, is building a sixth casino.
The state would tax sports betting under the 20% rate set for casino gambling.
The measure keeps Nebraska’s current limits on college betting. Player props and in-game bets on games involving Nebraska college teams would not be allowed. Neither would bets on athletes under 18 in professional or international events.
If voters approve, the Nebraska Racing and Gaming Commission would have to adopt rules by June 1, 2027.
Ballot campaign follows failed bills
The ballot campaign exists because lawmakers would not legalize online Nebraska sports betting. Bills failed in 2024 and 2025. Gov. Jim Pillen supported the idea of making online sports betting a priority issue in the 2025 session as way to provide residents with property tax relief.
Sen. Eliot Bostar pulled his 2025 proposal once it was clear it did not have the votes.
Even then, opponents in the legislature were wary of a ballot push for online Nebraska sports betting.
“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,” Sen. John Cavanaugh said at the time. “And it will be more expansive than this.”
The property tax argument
As referenced by Bussmann, both sides of the Nebraska sports betting ballot measure are making the race about property taxes, which have been a top issue for Nebraska voters for years. Tax Relief Nebraska commissioned a study from Eilers & Krejcik Gaming that projected online Nebraska sports betting could generate just under $87m in new state tax revenue over five years, and about $61m of that would go to property tax credits.
Critics say that amount is too small to matter. Sen. Brad von Gillern chairs the unicameral legislature’s Revenue Committee and said the yearly revenue would equal 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 said, per 1011 Now.
State Treasurer Joey Spellerberg said the $87m would require Nebraskans to lose more than $435m in bets. State Auditor Mike Foley told voters they were “being scammed on a false promise of property tax relief,” according to Nebraska Public Media.
Who supports taking Nebraska sports betting online?
FanDuel and DraftKings each gave Tax Relief Nebraska another $3.5m between late July and late September, according to filings with the Nebraska Accountability and Disclosure Commission.
That brings each operator to $7,037,500 for the cycle. The committee raised $7.25m during the period and had $5.43m in cash on hand as of Sept. 29.
Roar Digital, the parent company of BetMGM, added $250,000 after contributing the same amount earlier in the cycle. Fanatics has given $75,000.
Opponents rely on Husker credibility
Save Nebraska Sports cannot match the industry’s spending, so it is relying on name recognition and credibility.
Nebraska Public Media reported that University of Nebraska assistant football coach Ron Brown joined Spellerberg and Foley at the coalition’s Capitol launch in September.
Nebraska Family Alliance Executive Director Nate Grasz read a statement from legendary Nebraska football coach Tom Osborne. Osborne said online betting “turns an athletic contest into a gambling exercise with someone else’s money riding on the performance of young men and women.”
The coalition also cited NCAA survey data showing 36% of men’s basketball players have faced social media abuse from bettors.
Missouri shows the limits of money
The closest comparison is Missouri. In 2024, DraftKings and FanDuel funded almost all of a $43m campaign for Amendment 2 to legalize online sports betting.
It passed with 50.05% of the vote in spite of strong opposition, including Caesars, which spent $14m to oppose the ballot measure. The campaign included a lengthy legal battle.
In Nebraska, no operator is on the opposition side.
