Categories: Technology

Nebraska voters appear to reject online sports betting despite nearly $22.5 million campaign

Both linked measures to legalize mobile wagering through Nebraska's racetrack casinos trailed in unofficial returns. A defeat would close off a new market for sportsbooks and shows that doubts about tax relief can beat a heavily funded campaign.

Nebraska voters appear to have turned down online sports betting. Initiatives 440 and 441 would have amended the state constitution and statutes to allow mobile wagering through the state’s licensed racetrack casinos. The Secretary of State’s unofficial count, with 885 of 1,322 precincts fully reporting, had 440 trailing by about 296,000 to 354,000. The companion measure, 441, trailed by about 299,000 to 351,000. The results are not yet certified.

A loss would be a rare setback for the industry at the ballot box. Betting would stay in-person only at Nebraska’s five racetrack casinos. FanDuel, DraftKings and the racetrack operators would not gain a new market. Initiative sponsor Jordan McGrain called the midnight results “pretty clear.”

Opponents challenged the promised property-tax relief at the heart of the pitch

Tax relief was the core of the pitch. Supporters projected more than $166 million for the state’s property tax credit fund over ten years. Opponents countered that the money would flow to out-of-state gambling companies. Nebraska currently taxes casino gaming revenue at 20 percent. Of that tax, 70 percent goes to property tax relief credits.

A report commissioned by Tax Relief Nebraska, the committee behind the measures, estimated just under $87 million in new state tax revenue over five years. That projection did not carry the vote. Joey Spellerberg, the state treasurer, backed the opposition and said voters saw the promised tax benefits as negligible.

Should the unofficial result stand, gambling-harm arguments and doubts about tax relief would have carried a heavily outspent opposition to victory. That is a warning for future online casino and sports betting pushes in other states. It also comes as lawmakers are already restricting sweepstakes and prediction markets.

Funding and signature questions shadowed the campaign

The ballot route followed repeated failures in the Legislature. Lawmakers did not send a similar constitutional amendment to voters, including in 2024 and 2025. Tax Relief Nebraska then submitted more than 201,000 signatures for the amendment in late June 2026. It filed 146,000 for the companion statute. Election officials flagged possibly fraudulent signatures collected during the drive.

Funding also drew scrutiny. FanDuel and MGM subsidiary Roar Digital gave more than $3.5 million combined to Tax Relief Nebraska. The Legal Accountability Center asked the state’s disclosure commission to investigate. It cited the companies’ ownership in Ireland and the UK.

The proposed market was tightly drawn. Each racetrack gaming operator could have offered wagering through at most two online platforms. Wagering servers would have had to be located in Nebraska. State regulators would have had until June 1, 2027, to adopt rules for online wagering.

The count now moves toward certification. County abstracts of votes must reach the Secretary of State by November 23. State canvassers meet on November 30, 2026, at 11:30 a.m. to certify the results. Recounts in eligible races start December 2 at 9 a.m.