Nebraskans will vote on two ballot measures that can reshape the state’s gambling industry and bring mobile sports betting to bettors across the state.
Measures 440 and 441 on Nebraska’s midterm ballot would collectively legalize and regulate online sports wagering, allowing people located in the state to place bets on professional and college sporting events. The measures come at a time when sports betting has become one of the fastest-growing segments of the American gambling industry.
Since the Supreme Court cleared the way for states to legalize sports wagering in 2018, sportsbooks have expanded into dozens of markets, turning professional sports into a lucrative business for gambling operators, advertisers and media companies.
And the state has much to gain from legalization—the biggest selling point being the possibility of generating additional tax revenue.
What are the initiatives, exactly?
The two initiatives are designed to work together, but they address different parts of the legalization process. Initiative 440 is a proposed constitutional amendment. It would amend the state’s constitution to authorize legislation allowing people to place sports wagers through internet-based platforms operated by authorized gaming operators connected to licensed racetrack casinos.
“We know Nebraskans are already wagering on sports through illegal and offshore platforms or driving to a neighboring state where wagering is legal,” supporters of the measures wrote in the Nebraska secretary of state’s informational pamphlet. “This means millions of dollars in tax revenue leave our state every year. Initiative 440 keeps the money in Nebraska through a legal, regulated and secure marketplace that is projected to deliver more than $166 million in direct property tax relief to Nebraska homeowners, farmers, ranchers and small businesses over the next ten years.”
Initiative 441 is the accompanying statutory initiative. It would establish the legal framework for online sports wagering and authorize the Nebraska Racing and Gaming Commission to regulate operators and adopt rules governing the industry.
“This initiative requires that 70 percent of all wagering tax revenue goes directly to Nebraska’s Property Tax Credit Cash Fund,” the supporters wrote.
A vote in favor of only one measure would not be enough to establish legal online sports betting. Both must pass for the proposed system to take effect.
Nebraska already permits some forms of sports gambling, however. Voters approved casino gambling at licensed racetracks in 2020, and sports wagering became available at racetrack casinos in 2023. But residents have to visit a licensed facility to place their bets.
According to the Nebraska Racing and Gaming Commission, sportsbooks generated approximately $9.28 million in gross gaming revenue in 2025, nearly double the $4.71 million recorded in 2024. And that existing market has already contributed to property tax relief—Nebraska taxes gross gaming revenue at 20%, with 70% of the resulting gaming-tax revenue directed to its Property Tax Credit Cash Fund.
A study commissioned by the campaign estimates the proposed online market could generate more than $166 million in additional property-tax relief over the next 10 years. That would average roughly $16.6 million annually.
Sports betting is the new American pastime
And the market for sports betting has never been bigger, evidenced by potential cross-border activity in Nebraska for sports wagers.
According to cybersecurity and geolocation compliance software company GeoComply, there were approximately 3.4 million attempts to access regulated sportsbook applications from Nebraska during the 2024-25 NFL regular season—which involved nearly 76,000 accounts. The company also recorded more than 326,000 geolocation checks at a single cornfield just across the border in Iowa.
“Thousands of bettors from Omaha cross the border into Iowa to place wagers this NFL season, driven by Iowa’s legal sports betting framework,” a GeoComply press release read. “This phenomenon has earned the nickname ‘The Busiest Cornfield in Iowa’ due to the sheer volume of geolocation checks observed in this rural area just over the state line.”
But the sports betting wave might not be as financially prosperous as it sounds. A September Bank of America Institute study found that one in five Americans view sports betting as an investment—with Gen Z respondent figures doubling to two in five.
The problem is that for the vast majority of bettors, gambling is a losing game. The study found that customers typically recover less than 75 cents for every dollar they send to betting platforms—and even Gen Z, the best-performing generation, falls short of breaking even.
The money backing the measures
The campaign behind the measures, Tax Relief Nebraska, attracted substantial financial backing from the gambling industry. According to campaign finance figures filed through the Nebraska Accountability and Disclosure Commission, the committee had raised just under $17.58 million and spent $15.83 million through October. According to Fortune’s internal review of Tax Relief Nebraska’s NADC Form B-1 BQC filed on October 26, Online gambling companies FanDuel contributed over $7 million and DraftKings contributed over $9.5 million.
According to the American Gaming Association, the U.S. commercial sports betting industry generated $16.96 billion in revenue in 2025, a 22.8% increase from the previous year. Americans wagered a total of $166.94 billion through state-regulated sportsbooks, an 11% increase year over year. Sports betting also generated $3.71 billion in state and local taxes in 2025, up 32.4% from 2024.
The expansion has been driven in large part by mobile applications, which allow customers to wager on games without visiting a casino. At least 38 states, Washington, D.C., and Puerto Rico had legalized commercial sports betting in some form, according to the National Conference of State Legislatures.
Pew Research Center’s 2025 analysis survey of nearly 10,000 U.S. adults found that 22% had bet money on sports in the previous 12 months, up from 19% in 2022. The increase was driven entirely by online wagering—10% of adults said they had placed a bet through a sportsbook app or website in the previous year, compared to 6% in 2022.
Source: fortune.com
