Nebraska and Indiana Voters Reject Gambling Expansion

Nebraska voters have rejected online sports betting by 71,362 votes, ending a campaign that raised nearly $22.5 million from DraftKings and FanDuel. Initiative 440, the amendment that would have opened Nebraska to mobile wagering, lost 400,671 to 329,309 in Tuesday’s election with all 1,322 precincts reporting, according to unofficial results from the Nebraska Secretary of State.

Its companion statute, Initiative 441, failed 397,583 to 332,342. Both had to pass for betting apps to launch, so sports betting in Nebraska stays in person at the state’s five racetrack casinos. On the same night, voters in three northeast Indiana counties turned down a new casino.

A $22.5 Million Campaign Comes Up Short

The margin grew as the count went on. At midnight, Initiative 440 trailed 285,520 to 239,331. The final unofficial tally on the state results page puts the vote against at 54.9% on the amendment and 54.5% on the statute. Those numbers stay unofficial until the state certifies them.

The money was almost all on one side. Tax Relief Nebraska, the committee behind both measures, had raised nearly $22.5 million through Oct. 29, the Nebraska Examiner reported from campaign filings. Boston’s DK Crown Holdings, the parent of DraftKings, and New York’s FanDuel Inc. gave $10.4 million each, and out-of-state gambling groups were the campaign’s sole donors.

State Treasurer Joey Spellerberg, who backed the opposing Save Nebraska Sports campaign, called it a “David and Goliath” fight. He said his side was outspent 20-1.

What the Measures Would Have Done

Under the proposals, betting apps would have had to partner with an established racetrack casino, and platforms like DraftKings and FanDuel would have had to run a gaming server inside the state. Nebraska taxes casino gaming revenue at 20%, and 70% of that goes to property tax relief, the same share the online measures would have used. Supporters projected over $166 million in property tax relief over 10 years.

The pitch rested on money crossing the border. GeoComply told lawmakers it blocked 4.5 million attempts by Nebraskans to reach legal mobile sportsbooks in other states between July 1, 2023, and June 30, 2024. Over a year, people crossed the state line to bet on their phones 40,000 times, mostly into Iowa, where you can bet online anywhere in the state.

Opponents Say the Tax Pitch Failed

US Sen. Pete Ricketts wasn’t subtle about it. “We were being sold a bill of goods about the online sports betting,” he said on election night. “We were not going to get property tax relief. That was a lie.”

Nate Grasz, executive director of the Nebraska Family Alliance, said in a statement that Nebraskans “refused to let them buy their way into our state.” The campaign also drew a complaint to the state’s Accountability and Disclosure Commission after FanDuel and Roar Digital, an MGM subsidiary, gave more than $3.5 million combined to Tax Relief Nebraska.

Initiative sponsor Jordan McGrain said the results were “pretty clear” by midnight. Lynne McNally, director of government relations for WarHorse Casino, said the state is losing tax revenue to betting that’s already happening. “It’s gonna continue to be the Wild West out there,” she said.

Northeast Indiana Shuts the Door

In Indiana, Public Question No. 3 asked voters in Allen, DeKalb and Steuben counties, “Shall inland casino gambling be permitted” in their county. All three said no. Allen County, home to Fort Wayne, voted 61,310 to 41,625 against, or 59.6%, in final unofficial results. DeKalb rejected it with 64.6% and Steuben with 58.7%.

House Enrolled Act 1038 created one new inland casino license for the region, with applications due to the Indiana Gaming Commission by Dec. 1. The winning developer would have had to invest at least $500 million and pay a $100 million license fee, plus $50 million for former host communities hurt by casino closures. According to the Indiana Capital Chronicle, a commission study had projected that an Allen County casino could bring in $204 million in revenue and $61 million in annual state taxes.

No Second Vote Allowed

The counties don’t get another try. If voters reject the casino, the law says, “a second public question under this section may not be held in that county.” With no county voting yes, the commission can’t award the license at all.

That leaves the map of legal gambling in the US as it was. Five gambling questions went to voters in Nebraska and Indiana on Tuesday, and all five lost.