On Tuesday, voters will head to the polls to make choices that could shape the gaming industry for years to come in three states, with online sports betting, satellite wagering on horse races, and land-based casino measures on the ballot.
Nebraska voters will decide whether to legalize online sports betting, with supporters believing the change could generate property-tax relief and opponents warning of the potential costs of more ways to wager on games.
Initiatives 440 and 441 are separate questions on the ballot, but both must pass for mobile wagering to be authorized and regulated in the state. Measure 440 would amend the state constitution to allow online sports betting through licensed racetrack casinos. Measure 441 would establish rules for betting, including oversight by the Nebraska Racing and Gaming Commission (NRGC).
Currently, sports betting is legal in Nebraska, but only retail wagering is allowed at one of the state’s five racetrack casinos. Last year, sports betting revenue was about $9.3 million, resulting in less than $2 million in tax revenue, according to the NRGC.
Voters approved casino gaming at racetracks in 2020. The first racino to open in 2022 was WarHorse Casino, which opened at the Lincoln Race Course, and retail sports betting began the following year.
The group behind the petitions, Tax Relief Nebraska, has reportedly raised an estimated $21.7 million to fund their campaign to legalize mobile wagering. Their initiatives would direct 70% of the tax proceeds to property-tax relief, the same percentage that comes from casino taxes.
According to the initiatives, mobile wagering would be taxed at 20% of gross gaming revenue. Bettors would need to be physically located within the state to place a wager, while the servers also would have to be in Nebraska. Betting on Nebraska teams playing within the state would continue to be prohibited.
FanDuel and DraftKings have contributed nearly $10.3 million each during the election year. Fanatics has contributed $600,000 and BetMGM has donated $500,000 to the campaign.
Besides the companies that have donated to Tax Relief Nebraska, Caesars Entertainment, bet365, and theScore Bet could enter the state if voters approve the two measures.
The effort to legalize mobile sports betting hasn’t been without controversy. Tim Anderson, a candidate for Nebraska’s District 38 state Senate seat, lost several endorsements after accepting a campaign contribution from Tax Relief Nebraska.
Save Nebraska Sports, a group formed to oppose the legalization of mobile wagering, confirmed that U.S. Republican Senator Pete Ricketts, State Treasurer Joey Spellerberg, and State Auditor Mike Foley had withdrawn their endorsement for Anderson after learning he accepted $750,000 from Tax Relief Nebraska.
“We are disappointed that Tim Anderson chose to support online sports betting rather than protecting our young people and college sports,” the group said on a collective statement.
Former Nebraska football coach Tom Osborne joined more than 40 other current and former Huskers as part of Save Nebraska Sports in opposing the two ballot measures. The measures are also opposed by the Nebraska Family Alliance.
“Nebraskans support, embrace, and protect our athletes,” Osborne said. “Legalizing online sports gambling does none of those things.”
Currently, 31 states and the District of Columbia have legalized online sports betting, with retail wagering on sports available in 36 states and Washington, D.C.
Hoosier casino measures
Voters in three northeast Indiana counties will decide the fate of a potential $500 million casino development with a simple question on their ballots.
“Shall inland casino gambling be permitted in (your) county?” asks Public Question No. 3 on the ballots in Allen, Dekalb and Steuben counties.
House Enrolled Act 1038, approved earlier this year, authorizes a new license for an inland casino in one of the three northeast counties and removes one unused racino license for horse racing with a facility that has slot machines, the Indiana Capital Chronicle reported.
If voters in a county agree to a casino, it doesn’t automatically mean a facility will be built. Any future development would still require approval from local elected officials and the Indiana Gaming Commission (IGC).
A no vote ends the process entirely. A yes vote would require prospective developers to submit their applications for that specific county to the IGC by December 1. The IGC would then have to review all applications and issue a final decision approving or denying each by April 15, 2027.
If a developer is chosen, they would have to pay a fee to the state of $100 million for the license and $50 million to support former host communities hurt by casino closures.
Satellite wagering on Virginia ballots
In Virginia, there are two ballot measures to expand satellite wagering on horse racing. A measure in the town of Pulaski asks voters if they support allowing satellite facilities in the community. A no vote would deny the effort to bring satellite wagering on horse racing to the town. A simple majority is required to approve either ballot question.
Voters in Amherst County will also decide whether to permit pari-mutual wagering at satellite facilities in the county. A simply majority vote is also required to approve a yes or no vote on the measure.
Satellite wagering facilities and off-track betting facilities are authorized and regulated by the Virginia Racing Commission.
