Nebraska Online Sports Betting Ballot Measures Linked to Property Tax Relief Face Voter Test

The campaign to legalize online Nebraska sports betting enters the final three weeks before the Nov. 3 election after raising $14.65 million. FanDuel and DraftKings each added more than $3.5 million recently, bringing their respective totals to $7,037,500. The committee Tax Relief Nebraska ties the expansion to property tax relief after legislative bills failed in 2024 and 2025.

Nebraska currently limits sports betting to in-person wagering at casinos. That market launched in 2023 after voters approved broader casino gambling in November 2020 by a 65% margin. Two ballot measures must both pass for online access to take effect.

Measure Details and Regulatory Path

Initiative 440 would amend the state constitution to allow online sports wagering by people located in Nebraska through an authorized gaming operator at a licensed racetrack. Initiative 441 sets the statute, permitting each of the state’s five racetrack casinos to offer betting through no more than two online platforms. WarHorse Casino is building a sixth casino.

The state would tax sports betting at the 20% rate set for casino gambling. Current limits on college betting remain in place. Player props and in-game bets on games involving Nebraska college teams would not be allowed, nor would bets on athletes under 18 in professional or international events. If approved, the Nebraska Racing and Gaming Commission would adopt rules by June 1, 2027.

Tax Relief Claims Draw Sharp Counterarguments

Tax Relief Nebraska commissioned a study from Eilers & Krejcik Gaming projecting just under $87 million in new state tax revenue over five years, with about $61 million directed to property tax credits. Brendan Bussmann of B Global Advisors told SBC Americas the outcome will turn on voter views of that link. “This is going to come down to how much Nebraskans believe they get in property tax relief, and if sports betting is the panacea for it,” Bussmann said.

Critics counter the sum is too small. Sen. Brad von Gillern, who chairs the Revenue Committee, said the yearly revenue equals about 1% of the state’s property tax relief program. “If people are voting for the online gambling initiative believing that it’s going to substantially change their property tax bill, they’re going to be sadly disappointed,” von Gillern said. State Treasurer Joey Spellerberg noted the $87 million would require more than $435 million in resident betting losses. State Auditor Mike Foley called it “being scammed on a false promise of property tax relief.” Opposition efforts cite University of Nebraska football voices including assistant coach Ron Brown and a statement from Tom Osborne.

The Decision’s Narrow Margin

With no operators opposing the measure and industry funds dominant, the vote will test whether the property tax argument lands despite its limited scale. Approval would open a constrained online market but trigger an aggressive rulemaking deadline. The risk lies in overpromising fiscal relief that delivers far less than voters may expect.

Reporting: SBC Americas

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