DraftKings and FanDuel Inject $7M into Nebraska Sports Betting Campaign Ahead of Election Day

Pushed by multi-million-dollar infusions from DraftKings and FanDuel, the campaign to legalize online sports betting in Nebraska has amassed a $14.6 million financial war chest with less than a month to go before Election Day.

Tax Relief Nebraska—the ballot committee supporting Initiative Measures 440 and 441 to legalize mobile sports betting—enters the final stretch before Election Day backed by a $14.65 million war chest. The committee successfully led the statewide petition drive that certified the constitutional amendment and statutory measures for the November ballot.

With less than a month remaining before voters decide the issue, primary backers DraftKings and FanDuel continue to pour capital into the campaign.

Filings with the Nebraska Accountability and Disclosure Commission show each operator contributed an additional $3.5 million between July 28 and Sept. 29, doubling their earlier matching contributions of $3.53 million apiece.

BetMGM also doubled its support, contributing another $250,000 to the campaign. Fanatics, which gave $75,000 in the prior reporting period, did not re-up.

Media Blitz & Opposing Pressure

Tax Relief Nebraska has more than $5.42 million in cash on hand to spend over the final month.

The campaign spent $2.29 million during the reporting period, with the bulk of the expenditures for media placement. Funds were also used for research and surveys, legal consulting, creative design services, and printing and postage.

In contrast, primary opponent Nebraska Family Alliance operates on a fraction of that budget. The faith-based organization reported spending just $2,109 during the same period, primarily for postage on a statewide “Voter Guide” opposing the measures.

Property Tax Revenue Model

Tax Relief Nebraska needs a simple majority (50% plus one vote) to pass the sports betting referendums. If the electorate backs the questions, each racetrack casino in Nebraska would be allowed to operate or partner with up to two online sportsbooks.

The arrangement means the Nebraska Racing and Gaming Commission would not conduct a competitive bid for online sportsbook licenses but instead give those powers to its licensed casino operators. Casino partnerships with sportsbooks would then apply for mobile sportsbook permits with the state gaming regulator.

The measures would require that state tax revenue from online sports betting benefit homeowners with property tax credits. Currently, gross revenue from slot machines and table games is taxed at 20%, with 70% of the tax money allocated to the Property Tax Credit Cash Fund.

A study commissioned by Tax Relief Nebraska estimated that Nebraska would generate almost $87 million in new state tax revenue over the first five years of online sports betting. If 70% is directed to property tax relief, that would translate to roughly $61 million in homeowner relief.

Regardless of the Nov. 3 outcome, bets on in-state college sports would remain on the sidelines.