Less than two weeks before voters to go the polls to determine it, iconic former Nebraska football coach Tom Osborne joined 44 other University of Nebraska coaches and players this week in publicly opposing legalization of online sports betting.
Nebraska voters will consider two ballot measures — 440 and 441 — run by a coalition of commercial operators and local racino companies. The initiatives would make it legal to place online sports bets, as is already the case in Nebraska’s border states. In-person wagering in Nebraska has been live since June 2023, and the initiatives’ approval would mark the second time six years Nebraskans have approved gambling expansion.
Since the U.S. Supreme Court overturned the Professional and Amateur Sports Protection Act in 2018, six states (including Nebraska) have legalized some form of wagering at the ballot box, with at least two doing so by narrow margins. In addition, a 2022 effort in California failed, and commercial operators pulled an attempt in Florida in 2022 when proponents could not meet the signature threshold.
In Nebraska, the ballot package is being financed in large part by DraftKings and FanDuel, along with support from BetMGM and Fanatics Sportsbook. The latest state campaign finance numbers, which go through Sept. 29, revealed that proponents of Tax Relief Nebraska had funded the campaign with about $14 million.
If they are successful, a significant percentage of online sports betting revenue would be directed to property tax relief.
‘Integrity of the entire sport is at risk’
The latest letter from opponents, who call themselves Save Nebraska Sports, doubles down on the group’s previous arguments that commercial operators are looking to “profit off of fans and players,” and that legal online sports betting could raise integrity and harassment concerns. Six football and wrestling coaches signed the letter, as did athletes across sports including football, basketball, baseball, softball, volleyball, and women’s tennis.
“These groups do not care about our athletes, our traditions, or Nebraska families,” reads the letter. “They see our state as another market and every phone as another casino.
“The FBI also warns that criminal actors attempt to manipulate games by exploiting athletes facing financial difficulties, substance abuse, or gambling problems. When fans begin questioning whether the outcome of a game is determined by honest competition, the integrity of the entire sport is at risk.”
In addition to Osborne, Save Nebraska Sports is backed by the Nebraska Family Alliance, the state auditor, the state treasurer, and a Nebraska football assistant coach. The group announced itself in September.
Proponents promise property tax relief
Tax Relief Nebraska says legal online sports betting would be a boon to the state, bringing in $60 million in tax revenue, though it’s unclear from the website whether that number is per year or in a different timeframe. According to the website, the ballot package would “keep that revenue in Nebraska to support local communities and dedicate millions annually to property tax relief.”
A 2025 fiscal note for LB421, which was considered by the state legislature, projected $9.2 million in 2026 and $20.4 million in 2029, the final year projected. The proposed tax rate for that bill was 20%, the same rate that is used in the ballot package.
“Nebraskans are feeling the burden of rising property taxes, and they want a real solution,” reads the proponents’ website. “This initiative creates a new, dedicated revenue stream without raising taxes on Nebraska residents.”
Should the ballot package pass, each approved land-based facility would be allowed up to two online betting partners. The gaming regulator would be required to promulgate rules by June 1, 2027.
