DraftKings and FanDuel have contributed a combined $3m to a Nebraska ballot campaign seeking to legalise online sports betting, increasing industry support for one of the latest state level expansion efforts in the US market.
Through subsidiary DK Crown Holdings, each donated $1.5m to Tax Relief Nebraska, the committee behind two proposed ballot measures. The first would amend the Nebraska Constitution to allow sports wagers to be placed through internet-based platforms. The second would create the statutory framework for regulation.
Nebraska currently permits sports betting only in-person at licensed racetrack casinos. Five retail sportsbook locations operate in the state, in Omaha, Lincoln, Grand Island, Columbus and Ogallala. Online sports betting remains prohibited.
Tax Relief Nebraska has now received more than $5.6m in donations this year. Previous contributors include Roar Digital, an MGM subsidiary, and FBG Enterprises, linked to Fanatics Betting and Gaming. The campaign has also received backing from the Sports Betting Alliance, the national group representing major US online betting operators.
If approved by voters, the Nebraska model would require online betting platforms to partner with existing racetrack casinos. Operators would also be required to run gaming servers within the state, creating a tethered structure similar to that used in a number of other US jurisdictions.
The campaign is positioned around tax relief as well as market modernisation. Under Nebraska’s current gaming tax structure, 70% of gaming tax revenue is directed to the Property Tax Credit Cash Fund. Supporters of online sports betting argue that digital regulation would allow the state to capture revenue from activity that may otherwise move to offshore operators or neighbouring markets.
Political opposition remains a factor. Attorney General Mike Hilgers has said he opposes gambling expansion, while Governor Jim Pillen has opposed gambling despite supporting the use of gaming revenue for property tax relief.
To qualify for the November ballot, organisers must meet two signature thresholds. The constitutional amendment requires valid signatures from at least 10% of registered voters (about 125,000 people) and the statutory petition requires signatures from 7%, or about 88,000 voters. Both petitions must also secure signatures from at least 5% of registered voters in 38 of Nebraska’s 93 counties. The deadline for submission is July 3rd.
Nebraska is not among the largest potential US sports betting markets, but the campaign is significant for operators seeking further mobile expansion in states where retail betting is already legal. For DraftKings, FanDuel and other brands, the vote will represent another test of whether ballot initiatives, local casino partnerships and tax relief messaging can unlock restricted markets as the post-PASPA expansion cycle matures.
