Nebraska Online Sports Betting Campaign Faces Late Opposition

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A campaign to legalize online sports betting in Nebraska, largely funded by FanDuel and DraftKings, is encountering increased opposition as the November 3 election approaches. Former University of Nebraska football coach Tom Osborne and state officials have voiced concerns regarding the ballot initiatives.

What Happened

Nebraska voters are scheduled to decide on November 3 whether to legalize online sports betting through Initiatives 440 and 441, according to SBC Americas. The campaign supporting these initiatives, primarily financed by FanDuel and DraftKings under the name Tax Relief Nebraska, has raised $14.65 million and spent $9.22 million through September 29, as per public filings. Each sportsbook company reportedly contributed over $7 million. The campaign emphasizes potential property tax relief and the establishment of a regulated betting market.

However, opposition has become more visible in the final days before the vote. Former University of Nebraska football coach Tom Osborne, alongside dozens of current and former Huskers athletes and coaches, has urged voters to reject Initiatives 440 and 441. Additionally, State Treasurer Joey Spellerberg and State Auditor Mike Foley have appeared in an advertisement that challenges the property tax relief claims central to the legalization campaign, as reported by the Nebraska Examiner.

The two ballot measures aim to amend Nebraska’s constitution and establish a regulatory framework for online sports betting, expanding beyond the current market limited to racetrack casinos. The Racing and Gaming Commission would be given a June 1 deadline to adopt necessary regulatory changes if the measures pass, according to the campaign sponsor Jordan McGrain.

Key Details

  • Initiatives 440 and 441 would amend the Nebraska Constitution and establish a statutory framework for online sports betting, as stated by SBC Americas.
  • The pro-legalization campaign, Tax Relief Nebraska, raised $14.65 million and spent $9.22 million through September 29, primarily funded by FanDuel and DraftKings, according to public filings.
  • Opposition includes former University of Nebraska football coach Tom Osborne and 45 current and former Cornhuskers athletes and coaches, who argue that expanding sports betting to mobile phones would expose athletes to harassment, increase advertising, and threaten competitive integrity, as detailed in a letter released by Save Nebraska Sports.
  • State Treasurer Joey Spellerberg and State Auditor Mike Foley have challenged the property tax relief promises, drawing parallels to the 2020 casino gambling vote, stating that property taxes have not decreased since then, according to the Nebraska Examiner.
  • Under the proposed measures, online Nebraska sports betting revenue would be taxed at 20%, with 70% of proceeds directed to the Property Tax Credit Cash Fund, unless lawmakers later change this structure. A commissioned study cited by the campaign projects $166 million for the fund over 10 years.

Why It Matters

The debate over online sports betting in Nebraska highlights a common tension between economic development arguments, such as potential tax revenue for property tax relief, and concerns over social impacts. The involvement of prominent state figures like Tom Osborne and high-ranking state officials in the opposition signals a significant contest for public opinion. The financial backing from major sportsbook operators like FanDuel and DraftKings underscores the industry’s investment in market expansion, while the opposition’s focus on athlete welfare and the effectiveness of tax relief measures presents a counter-narrative for voters to consider before the ballot initiatives.

What’s Next

Nebraska voters will cast their ballots on Initiatives 440 and 441 on November 3. If the measures pass, Initiative 441 mandates that the Racing and Gaming Commission adopt necessary regulatory changes by June 1, as reported by the campaign sponsor Jordan McGrain.

Originally reported by SBC AmericasPublished

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