Nebraska voters appeared to reject a proposal to legalize online sports betting and use much of the resulting tax revenue for property-tax relief, according to unofficial results from the Nov. 3 general election.
Two related ballot measures were trailing by about eight percentage points in results reported by the Nebraska Secretary of State shortly before 2 a.m. Wednesday. The proposals still had to be certified, but neither had received majority support in the reported vote totals.
The ballot measures
Initiative 440 would amend the Nebraska Constitution to authorize legislation allowing online sports betting. Initiative 441 would establish the regulatory structure for the activity, including licensed operators, taxation and oversight by the Nebraska Racing and Gaming Commission.
- Initiative 440: 295,963 votes for and 353,961 against.
- Initiative 441: 298,662 votes for and 351,173 against.
The measures were designed to work together. Approval of the constitutional amendment would have allowed lawmakers to authorize online wagering, while the companion initiative would have supplied the rules for operators and the state’s tax system.
Tax-relief proposal
Tax Relief Nebraska, the organization supporting the initiatives, raised about $22.5 million for the campaign, with major sportsbook operators providing substantial backing. Supporters argued that Nebraskans already cross state lines or use offshore websites to place mobile wagers, sending potential tax revenue elsewhere.
Under the proposed framework, online sports betting would have been subject to a 20% tax. Tax Relief Nebraska said 70% of the proceeds would have gone toward property-tax relief. The group estimated that the plan would generate $238 million in tax relief over 10 years.
The proposal would have changed Nebraska’s current system, which permits sports betting at licensed racetrack casinos but does not allow state-regulated mobile sportsbooks. The existing in-person wagering network would have remained in place while online betting was added through licensed operators.
Supporters framed the proposed tax revenue as a way to broaden the state’s tax base and retain money that residents may spend on mobile wagering outside Nebraska. Opponents argued that easier access to betting could increase gambling-related harm and that the potential revenue was not worth the broader costs they associated with online wagering.
The initiatives’ status remained unofficial Wednesday morning. If the results hold through the counting and certification process, Nebraska’s sports-betting rules will remain limited to in-person wagering at licensed racetrack casinos, and the proposed online betting tax revenue will not be available for property-tax relief.
