Fate of Nebraska Online Sports Betting To Be Decided This Week

• Nebraska voters will determine two questions to legalize online sports betting during the Tuesday, Nov. 3 general election
• Sports betting companies have donated more than $22.5 million to the online sports betting campaign
• Voters must approve two initiatives to approve Nebraska online sports betting

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Voters will determine the fate of Nebraska online sports betting during Tuesday’s general election, which will see two initiatives asking for approval to legalize the form of gaming in the Cornhusker State.

The Nebraska general election will take place on Tuesday, Nov. 3, with polls open from 8 a.m. to 8 p.m. The general election ballot will include two initiatives – one amending the state constitution to legalize online sports betting and another to set the regulatory framework – that both need to be approved for online sports betting to go into effect.

If legalized, sports betting rules and regulations will be required to be approved on or before June 1, 2027.

Money Flows into Nebraska Campaign

Nebraska’s ballot questions likely pose the last chance for a state to legalize online sports betting in 2026, leading operators to focus their financial support and attention on the state.

From July 28, 2026, through Oct. 29, 2026, Tax Relief Nebraska received more than $22.5 million in contributions. Both DraftKings and FanDuel contributed $10.4 million each during the campaign, the top two contributors.

BetMGM and Fanatics have also contributed to the campaign.

Nebraska Online Sports Betting Framework

The constitutional amendment earmarks 70% of online sports betting tax revenues for a property tax credit fund in the state. The tax revenue disbursements are similar to Nebraska’s legal in-person sports betting market.

The referendum question will establish Nebraska’s online sports betting framework. It allows for licensed Nebraska gaming facilities to offer up to two online sports betting platforms each through either their own technology or a partnership with a gaming company, such as DraftKings or FanDuel. Sports betting rules and regulations will be required to be approved on or before June 1, 2027,

Tax Relief Nebraska commissioned a study from Eilers & Krejcik on the impact online sports betting may have on tax relief in the state. If legalized, Nebraska could see millions in additional revenue for property tax relief over the next five years.

According to Eilers & Krejcik, Nebraska projects to generate $86.6 million in gross gaming revenue in its first year of legalized online sports betting, which would increase to about $163.1 million in gross gaming revenue by year five.

The company projected these revenue estimates by observing gross gaming revenue-per-adult data from comparable markets, such as Kansas, Iowa, Kentucky, and Wyoming. These were adjusted for Nebraska-specific factors such as disposable income, sports interest, internet access, and a prohibition on sports betting involving Nebraska college teams.

The independent research firm estimate Nebraska would see nearly $87 million in total online sports betting tax revenues through the first five year of operation. About $60.9 million would be used for Nebraska property tax relief with the required 70% property tax relief allocation.

About $21.7 million would be used for the local share, $2.2 million for a compulsive gambling fund, and $2.2 million for the state’s general fund.

Opposition Mounted to Legalization

A Nebraska coalition in opposition of online sports betting legalization has been looking for support in the state over the last several months leading up to the election. Save Nebraska Sports, which boasts support from Nebraska State Auditor Mike Foley, Nebraska State Treasurer Joey Spellerberg, and former Nebraska University football coach Tom Osborne, have criticized the initiatives and legalization of online sports betting.

The group points to growing concerns over threats against athletes stemming from sports betting and aggressive marketing campaigns that target young people. More than one-third of boys between the age of 12 and 17 have gambled online, the coalition notes, while 60% regulatory see online gambling ads on YouTube and social media.

The coalition also believes that the predicted tax revenues from online sports betting may not live up to what has been promised.

“As state auditor, I feel an obligation to inform the cities you’re being scammed on a false promise of property tax relief,” Foley said in September, “which is very sensitive to you. False promise of getting tax relief when you’re not going to get it.”