Nebraska voters to decide on legalizing online sports betting

Measures 440 and 441, appearing on the midterm ballot, aim to legalize and regulate online sports wagering, enabling Nebraskans to place bets on professional and college sports from within the state. This proposal arrives as the sports betting industry experiences rapid growth across the United States.

Following a 2018 Supreme Court decision, numerous states have embraced sports wagering, creating a lucrative market for gambling operators, advertisers, and media companies. Legalization promises potential benefits for Nebraska, most notably the possibility of increased tax revenue.

Initiative 440 proposes a constitutional amendment that would authorize legislation permitting sports wagers through internet platforms connected to licensed racetrack casinos. Supporters argue that Nebraskans are already engaging in illegal or offshore betting, and that legalization would keep revenue within the state. They project that the measures could deliver over $166 million in direct property tax relief to homeowners, farmers, ranchers, and small businesses over the next decade.

Initiative 441 establishes the legal framework for online sports wagering and empowers the Nebraska Racing and Gaming Commission to oversee the industry. It mandates that 70% of wagering tax revenue be directed to Nebraska’s Property Tax Credit Cash Fund.

Both measures are required to pass for online sports betting to become legal. Nebraska currently allows some forms of sports gambling; casino gambling at licensed racetracks was approved in 2020, and in-person sports wagering began in 2023.

Sportsbooks generated approximately $9.28 million in gross gaming revenue in 2025, nearly double the $4.71 million recorded in 2024. This existing market has already contributed to property tax relief through a 20% tax on gross gaming revenue.

A study commissioned by the campaign estimates that the proposed online market could generate an additional $16.6 million annually in property tax relief over the next 10 years.

Data from GeoComply indicates a significant interest in online sports betting from Nebraska residents. During the 2024-25 NFL season, there were approximately 3.4 million attempts to access regulated sportsbook applications from the state, involving nearly 76,000 accounts. A particularly high concentration of geolocation checks—over 326,000—were recorded near a cornfield in Iowa, a phenomenon dubbed “The Busiest Cornfield in Iowa.”

However, a recent Bank of America Institute study highlights potential financial risks associated with sports betting, noting that most bettors lose money, with even younger generations struggling to break even.

The campaign behind the measures, Tax Relief Nebraska, has received substantial financial support from the gambling industry, including over $7 million from FanDuel and $9.5 million from DraftKings. The U.S. commercial sports betting industry generated $16.96 billion in revenue in 2025, a 22.8% increase from the previous year, with Americans wagering a total of $166.94 billion. At least 38 states, Washington, D.C., and Puerto Rico have legalized commercial sports betting in some form.