Share 
During Tuesday’s midterm elections, Nebraska voters rejected two ballot measures that would have legalized online sports betting.
Sports wagering remains limited to retail bets at the state’s racetrack casinos. The results didn’t come until well after midnight Central, with the Associated Press calling both races after 2 a.m.
Legalization rested on two measures
Voters decided on Initiative 440, which would have amended the state constitution to expand sports betting to online wagering. Initiative 441 was a companion measure that would have written the regulatory rules into the Nebraska Racetrack Gaming Act.
If the measures had passed, each racetrack casino could have offered mobile sports betting through up to two online platforms. The law would have gone into effect on Jan. 1, 2027, with a deadline of June 1, 2027, for the Nebraska Racing and Gaming Commission to adopt the new gaming rules.
Prediction markets expectations
The outcome contrasted sharply with expectations on Kalshi. Daily pricing data from the prediction markets platform showed the following probabilities of passage heading into Election Day:
- Initiative 440: About 73%
- Initiative 441: About 69%
By 2:54 a.m. Central Wednesday morning, Kalshi’s probabilities of passage had fallen:
- Initiative 440: 2%
- Initiative 441: 1.7%
Supporters and opponents clash over property tax claims
The committee behind the measures, Tax Relief Nebraska, received most of its funding from online sportsbook operators according to Nebraska Accountability and Disclosure Commission filings. FanDuel and DraftKings contributed about $3.5 million each in August. Overall, DraftKings and FanDuel bothcontributed $10.4 million.
The committee argued that legal online betting would keep money in the state and pay for property tax relief. Nebraska taxes gaming revenue at 20% and sends 70% of that tax to property tax credits. Supporters claimed that this would mean “more than $166 million in real property tax relief goes straight to Nebraskans over the first ten years.”
Supporters also said “Nebraskans are already wagering on sports through illegal and offshore platforms or driving to a neighboring state where wagering is legal.” Colorado, Iowa, Kansas, Missouri and Wyoming all allow online sports betting.
Save Nebraska Sports, the opposition campaign backed by State Auditor Mike Foley and State Treasurer Joey Spellerberg, argued the tax benefits would amount to little. Spellerberg, who won his race for state treasurer Tuesday, told the Nebraska Examiner that Tax Relief Nebraska outspent his side 20-to-1. He said voters saw through the property tax pitch.
Retail sports betting continues at racetrack casinos
Five casinos in Nebraska offer retail sports betting: WarHorse Casino locations in Omaha and Lincoln, Grand Island Casino Resort, Harrah’s Columbus Racing and Casino, and Lake Mac Casino Resort and Racetrack in Ogallala.
Nebraska’s casinos reported $6.3 million in sports betting revenue from January through September, about 2.6% of the $240.9 million they collected from all gaming, according to State Racing and Gaming Commission tax reports.
