Nebraska Voters Say No to Online Sports Betting Proposals

Online sports betting won’t be coming to the Cornhusker State anytime soon.

Initial results from the 2026 Midterm Elections show that voters defeated two initiatives to legalize online sports betting. Both proposals lost by a 10-point margin, showing a clear rejection of the industry. 

The result is a major loss for Tax Relief Nebraska, which led the $22 million effort to support both ballot initiatives. The group, led by WarHorse Casino, tried to circumvent years of legislative deadlock by allowing Nebraska residents to vote on legalizing online sports betting. 

TRN led the signature-gathering effort and helped defend against legal challenges that sought to remove the initiatives from the ballot. It insisted that the tax revenue could help provide critical property tax relief for residents, with projections ranging from $60 million to $150 million.

However, Nebraska State Auditor Mike Foley questioned the true impact of that tax revenue last month.

“A little bit from the losses of the bettors, they will pay a little bit back in property tax relief and say, look at all the good we did on your property taxes when in fact you are not even going to feel it on your property tax bill,” Foley shared with First Alert 6. “I calculated, if you own a home that is worth maybe 300,000 dollars something like that, you might get $10-15 back in property tax relief. That is not property tax relief, that is not solving our problem at all.”

These doubts appeared to resonate with voters, who ultimately decided they weren’t worth the dangers posed by online sports betting.

Voters Put the Industry on Notice

While questions regarding the tax revenue played a role in Tuesday’s Nebraska results, it wasn’t the only factor working against the industry.

Many US residents have grown concerned about the impact online betting has had on public health. The industry has been connected to the spike in problem gambling, especially among young bettors. While operators, regulators, and lawmakers are scrambling for solutions, the issue continues to spiral out of control.

The NCAA and pro sports leagues have also sounded the alarm on harassment from angry bettors. Athletes, coaches, and officials have seen an uptick in harassment and threats as legal sports betting has spread across the US. 

One of the final and most devastating blows for the industry came when The New York Times reported that DraftKings Sportsbook was using AI to target losing bettors for promos and bonuses. This followed a long summer for FanDuel, which was accused of similar violations with its VIP program. While they have denied these accusations, the operators have resisted calls for transparency.