DraftKings and FanDuel Spend Millions on Mobile Betting in Nebraska

DraftKings and FanDuel each gave $10.4 million to the campaign aimed at legalizing mobile sports betting in Nebraska. Almost all of the money collected by the committee, Tax Relief Nebraska, comes from these two companies. As of October 29, the committee had raised about $22.5 million. Fanatics and BetMGM also contributed.

In Nebraska, sports betting is currently allowed only in person at licensed racetrack casinos. Supporters argue that residents are crossing into neighboring states such as Iowa to place bets on their phones, and that Nebraska is therefore losing tax revenue.

Voters must approve two initiatives. Initiative 440 is a constitutional amendment that allows online sports betting, while Initiative 441 sets up the regulatory framework. Under the proposal, mobile betting sites could operate on up to 12 platforms in partnership with licensed racetrack casinos. The Nebraska Racing and Gaming Commission must adopt regulations by June 1, 2027. 70 percent of the tax revenue generated would go to a state property tax relief fund.

Campaign sponsor Jordan McGrain says the regulation will protect consumers. Opponents, however, question how large the property tax reduction would actually be. Save Nebraska Sports has enlisted former Cornhuskers football coach Tom Osborne and several Nebraska athletes and coaches for its campaign. These figures warn about addiction, aggressive advertising, and harassment of college players.

The campaign's spending has also drawn criticism because of a donation to a legislative candidate. On October 27, Tax Relief Nebraska gave $750,000 to Republican candidate Tim Anderson in Legislative District 38. Anderson's campaign had raised about $95,000 before that donation. After the donation, U.S. Senator Pete Ricketts, State Treasurer Joey Spellerberg, and State Auditor Mike Foley withdrew their support for Anderson.