With Election Day approaching in less than ten weeks, Nebraska voters will face two questions regarding the legalization of online sports betting in their state.
The Nebraska Secretary of State, Robert B. Evnen, announced last week that supporters successfully gathered enough signatures to place these questions on the ballot for November 3.
Although Nebraska legalized sports betting five years ago, it has been restricted to in-person wagers at state-licensed casinos located at racetracks.
While several states have utilized ballot measures to permit online sports betting, Nebraska could become the first to do so since the Commodity Futures Trading Commission (CFTC) allowed federally regulated prediction markets to offer contracts on sporting events over 18 months ago. Several states have initiated lawsuits against Kalshi and other operators, claiming that their activities violate local gaming laws.
Notably, Nebraska has not joined these legal actions. However, Attorney General Mike Hilgers, along with 40 other attorneys general, signed a letter earlier this year to CFTC Chair Michael Selig, asserting that the federal agency should not oversee such contracts.
Nebraskans will vote on both a constitutional amendment to allow online sports betting and a measure to amend state gaming laws to include online betting, which would require the Racing and Gaming Commission to create regulatory rules.
In November 2020, voters approved three measures to legalize casino gambling, each receiving over 65% support.
The campaign for online sports betting in Nebraska is primarily funded by major industry players, including FanDuel and DraftKings. Records from the Nebraska Accountability and Disclosure Commission show that Tax Relief Nebraska, the committee spearheading the petition drive, has raised $7.4 million this election cycle.
Over $5.1 million has already been spent as proponents gathered more than 235,000 valid signatures across the state’s 93 counties. The petition drive began in January, with signatures submitted to Evnen’s office by late June, ahead of the July 2 deadline.
DraftKings and FanDuel each contributed over $3.5 million, while BetMGM and Fanatics provided $250,000 and $75,000, respectively. Notably, DraftKings, Fanatics, and FanDuel also operate prediction markets and currently handle trades for sports contracts in Nebraska.
Industry insiders suggest it’s premature to determine whether these operators will block sports markets in Nebraska before the initiative. None of them currently allow trading on sporting events through their prediction exchange apps in states where they hold online sports betting licenses.
If the measures are approved, each of Nebraska’s five casinos could collaborate with up to two online sports betting platforms. However, it appears unlikely that many operators will seek licenses initially.
For comparison, Missouri, which recently launched online sports betting, has eight operators, while North Carolina has seven. Both states have larger populations than Nebraska, which ranks as the 13th smallest state with just over 2 million residents. Neighboring states Wyoming and Kansas have five and seven licensed operators, respectively.
Additionally, Nebraska prohibits wagering on in-state college events involving Nebraska schools.