Nebraska voters have rejected two ballot measures that would have legalized online sports betting. This is despite prominent operators like DraftKings and FanDuel investing millions in the campaign. Initiatives 440 and 441 failed to secure majority support during Tuesday’s election, with roughly 55% of voters opposing both proposals. Nebraska is set to remain a retail-only sports betting market.
The November 3 election gave residents a chance to expand sports betting beyond retail casinos. Initiative 440 would have amended Nebraska’s constitution to authorize online wagering, while Initiative 441 outlined how the market would be regulated.
According to the official election results, Initiative 440 received approximately 45% support, while Initiative 441 faced a similar outcome. Both measures needed to pass for mobile sportsbooks to become legal.
Nebraska currently allows sports betting at licensed racetrack casinos, but users must place their wagers in person. The proposals would have allowed those them to partner with online operators, giving companies such as DraftKings and FanDuel access to a new market.
The campaign supporting legalization received substantial financial backing from the gambling industry. Tax Relief Nebraska raised about $22.5 million through October 29, with DraftKings and FanDuel contributing roughly $10.4 million each.
Both operators had been increasing their financial support throughout the fall. In October, they each contributed another $3.5 million as the campaign intensified its advertising efforts ahead of Election Day.
Other operators, including Fanatics and BetMGM, also supported the initiative. Much of the campaign messaging focused on the potential financial benefits for Nebraska residents, particularly the promise of additional property tax relief.
However, the industry’s financial support wasn’t enough to sway voters.
Supporters argued that Nebraska was missing out on tax revenue as residents crossed into neighboring states to place mobile wagers. Under the proposed framework, 70% of online sports betting tax revenue would have gone toward property tax relief.
Tax Relief Nebraska estimated that legalization could generate more than $166 million in property tax relief over the next decade. The campaign presented those funds as a way to provide financial benefits without introducing additional taxes on residents.
Opponents questioned those projections and raised concerns about making gambling more accessible. The group “Save Nebraska Sports” challenged the expansion effort, warning about problem gambling and the potential influence of aggressive sportsbook advertising.
Former Nebraska football coach Tom Osborne also became involved shortly before Election Day. Osborne and 44 other current and former Nebraska sports figures opposed online betting, arguing that easier access could create additional risks for youth, especially college athletes.
For now, this is a blow to the chances of Nebraska online sports betting, at least for the foreseeable future.
