Nebraska voters have rejected two ballot measures that would have legalised online sports betting, leaving wagering in the state limited to in-person bets at racetrack casinos. Both measures failed by roughly 55% to 45% in unofficial results from the 3 November election, despite a campaign that raised nearly $22.5m.
The results
- Initiative 440, a constitutional amendment allowing online sports wagering: 329,346 yes (45.11%) and 400,711 no (54.89%), with 92% of precincts reporting.
- Initiative 441, which set out the regulatory and tax framework: failed by 54.5% to 45.5%, with 91% counted.
- Both measures needed to pass. Results remain unofficial until the Secretary of State certifies them.
Money on both sides
The campaign committee, Tax Relief Nebraska, raised nearly $22.5m through 29 October. DraftKings and FanDuel each contributed about $10.4m, according to filings reported by the Nebraska Examiner. Earlier filings also listed $500,000 each from FBG Enterprises and Roar Digital, the joint venture behind BetMGM. WarHorse Casinos backed the petition drive.
The opposition committee, Save Nebraska Sports, had raised about $1m by the end of September, and opponents said they were outspent by 20 to 1. They included State Auditor Mike Foley, Treasurer Joey Spellerberg, the Nebraska Family Alliance and Gambling with the Good Life. Former Huskers coach Tom Osborne led a letter from Nebraska athletes and coaches against the measures.
The measures would have sent 70% of tax proceeds to property tax relief. A study commissioned by the campaign projected $166m in relief over 10 years.
What they said
US Senator Pete Ricketts said:
“We were being sold a bill of goods about the online sports betting,” and “Nebraska saw right through it and that’s why those ballot issues went down.”
Nate Grasz, Executive Director of the Nebraska Family Alliance, said:
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“Nebraskans stood up to powerful gambling corporations with seemingly limitless resources”
Dan Taylor, CEO of FanDuel owner Flutter, told analysts on the company’s third-quarter call:
“Obviously we were disappointed with the result in Nebraska where the ballot didn’t go in our favor”
What happens next
Nebraska voters approved racetrack casinos with 65% support in 2020, and retail sportsbooks opened in 2023. Under the Racetrack Gaming Act, bets must still be placed in person by customers aged 21 and over. Any new attempt to legalise mobile betting would need to go through the Legislature or a fresh petition drive. Prediction markets, which are regulated by the CFTC, continue to offer sports contracts in the state.
The result follows other setbacks for online gambling expansion this election cycle, including in Texas. DraftKings recently said it spent $12.8m in the third quarter on iGaming advocacy and a sportsbook ballot measure, as Gamblita reported in its coverage of the company’s results.
Sources: Ballotpedia, WOWT, Fortune.
