Lincoln – Nebraskans will have the final say Nov. 3 on whether to legalize and regulate online sports betting as advocates and opponents clash in the final days of the 2026 race. Initiative Measures 440 and 441 would together amend the Nebraska Constitution and state law, respectively, to legalize and regulate online sports wagers.
In 2020, Nebraskans authorized casino gambling at the state’s existing five racetracks. Under current state law, annual gaming revenue is taxed at 20%, and 70% of that amount is directed to property tax relief credits.
An opposing group, Save Nebraska Sports, has stepped up opposition in the final two-week stretch, including an ad from State Treasurer Joey Spellerberg and State Auditor Mike Foley and an opposing letter from 45 current and former Huskers student-athletes and coaches. “Husker athletics is about teamwork, discipline, competition and pride in our state,” the Huskers’ letter, led by legendary coach Tom Osborne, states. “We cannot allow it to be used as a vehicle to enrich out-of-state gambling interests at the expense of Nebraska families.”
Regulating the ‘status quo’ Jordan McGrain, a sponsor of the ballot measure campaign, which is known as Tax Relief Nebraska, said the integrity and safety of student-athletes and coaches have a meaningful place in the debate. But he noted that state law and regulations offer protections for players and that sports bets placed in person at casinos are already legal. Under state law, Nebraskans cannot bet on the Huskers or other collegiate teams when they are playing at home. The State Racing and Gaming Commission can add other restrictions.
“Without legalizing and regulating the marketplace, we just get the status quo, which not only provides none of these protections but sees millions of dollars in revenue going across state lines,” McGrain said.
Gaming tax distribution Annual gross gaming proceeds (including all games of chance at casinos) are taxed at 20%. The tax revenue is then distributed as follows: 70% – Property Tax Credit Cash Fund. 25% – The county where a racetrack is located (if located at least partially in a city or village, the proceeds are split between the county and city or village). 2.5% – Compulsive Gamblers Assistance Fund. 2.5% – State of Nebraska General Fund (main state checking account). If online sports wagers are legalized, the new revenue would be taxed, and the revenue distributed, in the same manner, unless determined otherwise by the Legislature.
Voter-approved laws can only be changed by at least two-thirds of lawmakers (33 of 49). Source: Nebraska Revised Statute 9-1204 McGrain said Nebraskans are already participating in unregulated, illegal platforms on their phones through loopholes, such as “prediction markets” like Kalshi or Polymarket, or they’re crossing borders to all but one of Nebraska’s six neighboring states to place bets: Iowa, Missouri, Kansas, Colorado or Wyoming. He and other supporters, such as state Sen. Jason Prokop of Lincoln, have said Nebraska has the ills but none of the possible revenue that could help with taxes or problem gambling.
“There’s no question to me that Nebraska is just better served by legalizing it, regulating it and instilling these consumer protections and guardrails that have been effective in other states,” McGrain said. Prokop noted that under Nebraska’s prohibition, Iowa benefits from the “country’s busiest cornfield right across the river” as people cross over, place bets on their cellphones and then return.
Safety of student-athletes, coaches The Huskers’ letter states that game manipulation, relentless gambling ads and the harassment of athletes are concerns.
