On Election Day, November 3, Nebraska voters will decide whether to permit and oversee online sports betting, as supporters and critics engage in heated debate during the final stretch of the 2026 campaign. The proposed constitutional and legal changes—through Initiative Measures 440 and 441—would establish a framework for legalizing and regulating online wagers on sports.
Back in 2020, voters in Nebraska approved casino gambling at the state’s five existing racetracks. Current law taxes annual gaming revenue at 20%, with 70% of that going toward property tax relief credits. As the election nears, opposition has intensified, with Save Nebraska Sports leading the charge, including an ad featuring State Treasurer Joey Spellerberg and State Auditor Mike Foley.
Opposition from Huskers
A letter signed by 45 current and former Huskers athletes and coaches, spearheaded by legendary coach Tom Osborne, emphasizes the values of teamwork, discipline, competition, and state pride in Husker athletics. They argue against using it as a means to benefit out-of-state gambling interests at the expense of Nebraska families.
Annual gross gaming proceeds are taxed at 20%. The tax revenue is then distributed as follows: 70% to the Property Tax Credit Cash Fund, 25% to the county where a racetrack is located, 2.5% to the Compulsive Gamblers Assistance Fund, and 2.5% to the State of Nebraska General Fund.
Jordan McGrain, a key figure in the ballot measure campaign, acknowledges the importance of protecting student-athletes and coaches. He points out that existing state laws and regulations already safeguard players and that in-person sports betting at casinos is legal.
Support for Online Sports Betting
McGrain highlights that Nebraskans are already engaging in unregulated, illegal betting through loopholes like prediction markets or by crossing state lines to neighboring states, except one. He and supporters, including state Sen. Jason Prokop, argue that Nebraska faces the negative aspects of gambling without reaping any potential revenue for taxes or problem gambling support.
Prokop notes that under Nebraska’s prohibition, Iowa benefits from the fact that people cross over, place bets on their cellphones, and then return. The Tax Relief Nebraska campaign commissioned a study estimating $166 million in possible revenue over the next 10 years.
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McGrain suggests that with casino gambling revenue included, gaming taxes could conservatively reach $500 million over ten years. The campaign has produced at least seven video ads, one of which features Nebraskans expressing support for taking control of property taxes.
Nebraska Gov. Jim Pillen, who is running for reelection this fall, repeatedly said in 2024 that he supported the legalization of online sports betting. However, his spokesperson, Laura Strimple, says the governor is going to respect the will of the voters when asked if Pillen supports Initiative Measures 440 and 441.
Foley and Spellerberg, in the Spellerberg-paid-for ad, say the sports betting industry is “lying” about property tax relief and that advocates are making the “same false promises” as casino supporters did in 2020. “And our property taxes aren’t lower,” Foley says in the ad. “… Don’t believe the lies.”
The Huskers’ letter states that game manipulation, relentless gambling ads and the harassment of athletes over losing bets are dangers in the sports world, and that student-athletes should be able to compete without worrying that every play, mistake or outcome could affect someone’s financial well-being. “When fans begin questioning whether the outcome of a game is determined by honest competition, the integrity of the entire sport is at risk,” the letter states.
Prokop said he sees two separate issues this year: whether Nebraska has a well-regulated, legal sports betting system instead of the unregulated networks where “anything goes,” and protections for players and consumers. “I would work with anyone on a bill, whether it’s to look at if we need to increase penalties or anything like that if people are harassing student-athletes,” Prokop said. “That absolutely should not happen.”
Voter-approved laws can only be changed by at least two-thirds of lawmakers, according to Nebraska Revised Statute 9-1204.
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