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The State of Nebraska will have to go back to the drawing board in the fight to legalize online sports betting. Voters dealt Initiative 441 and Initiative 440 a resounding defeat during Tuesday’s election, rejecting the ballot measures by more than a 10-point margin.
The initiatives would have legalized online sports betting in the state, but required a 60% majority to amend the state constitution. Sports betting giants DraftKings and FanDuel bankrolled the push, dedicating $10.4 million apiece to get the initiatives across the finish line.
Dan Taylor, CEO of FanDuel’s parent company Flutter, said that the company will take lessons from the loss:
“Obviously we were disappointed with the result in Nebraska where the ballot didn’t go in our favor, but I think we’ll take something from that.
We know that there’s a need for the tax dollars and we know that we can deliver through regulation the protection for consumers that is required.”
State to lose out on tax revenue
Nebraska only recently legalized casinos at horse tracks in 2020, and with gross gaming revenue taxed at 20%, the state is in line to lose out on a new influx of tax revenue that could otherwise be captured if lawmakers ever decided to authorize Nebraska online casinos.
Proponents of the bill said that 70% of the taxable revenue would be dedicated toward property tax relief.
Lynne McNally, director of government relations for WarHorse Casino, the first casino to open in Lincoln in 2022, sees this as a net loss for the state:
“I’m disappointed for the state of Nebraska. Online betting is happening right now, all over the state, Nebraska is just losing out on tax revenue … that’s a real loss for the state of Nebraska.
It really is regrettable that we are not able to regulate and tax this activity because it should be subject to tax. There needs to be reasonable regulations on these activities, addressing problem gambling. Without these measures, that’s not going to happen. It’s gonna continue to be the Wild West out there.”
