Nebraska Voters Reject Online Sports Betting Initiatives

• Unofficial election results show Nebraska voters did not support online sports betting legalization
• Both initiatives were defeated by tens of thousands of votes
• Sports betting companies donated more than $22.5 million to the online sports betting campaign

---

Despite more than $22.5 million in support from several sports betting companies, Nebraska voters did not support two initiatives to legalize online sports betting in the Cornhusker State during the midterm elections.

Initiatives 140 and 141 – one to amend the state’s constitution to legalize online sports betting and one to set up new regulatory framework – were both roundly defeated by voters, according to unofficial election results posted by the Nebraska Secretary of State.

Both measures were required to be approved by voters for Nebraska online sports betting to be legalized.

Results Were Not Extraordinarily Close

Nebraska likely held the last chance for a state to legalize online sports betting in 2027.

Nebraska voters did not support either initiative needed to legalize online sports betting. Initiative 140, which would have amended the state’s constitution, was defeated by a 327,203 (45%) vote to 398,412 (55%) vote.

Initiative 141, which would set up the regulatory framework for online sports betting, received 330,231 votes (46%) for approval and 395,330 (54%) votes against.

The final vote totals will likely change as mail-in ballots are counted, but the results will likely not.

The support against the measures came at a $21 million expense for sports betting companies such as DraftKings and FanDuel, who both donated $10.4 million to Tax Relief Nebraska, the organization who successfully campaigned to have the measures placed on the state ballot.

Overall, Tax Relief Nebraska received $22.5 million in campaign contributions from sports betting companies, with BetMGM and Fanatics donating $1.7 million in total to the cause.

Proponents Pointed to Tax Relief for Citizens

Tax Relief Nebraska commissioned a study from Eilers & Krejcik on the impact online sports betting may have on tax relief in the state. According to the study estimates, if Nebraska has legalized online sports betting it would have resulted in millions in additional revenue for property tax relief over the next five years.

The constitutional amendment earmarked 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.

According to Eilers & Krejcik, Nebraska projected 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 estimated 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 have been used for Nebraska property tax relief with the required 70% property tax relief allocation.

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