Initiatives to legalize online sports betting in Nebraska make November ballot

Two initiatives aiming to legalize online sports betting in Nebraska will be included on the general election ballot.

The Nebraska Secretary of State’s Office announced Friday that it has certified enough of the nearly 350,000 total signatures supporting the two initiatives for them to go before voters this November.

The group behind the petitions, Tax Relief Nebraska, turned in more than 201,000 signatures in late June for its petition seeking a constitutional amendment to legalize online sports betting in the state and 146,000 signatures for its petition to create the regulatory framework to tax the wagers and direct 70% of the tax proceeds to property tax relief, the same percentage that comes from casino taxes.

The number submitted was well above what the group needed – approximately 126,000 for the constitutional amendment and 88,000 for the other petition.

A press release from the Secretary of State's office said the Online Sports Wagering Authorization Constitutional Amendment petition collected at least 138,473 valid signatures.

That's despite the fact that the two petitions are included in those being investigated after fraudulent signatures were discovered in previous petition efforts.

Currently, sports betting is legal in Nebraska, but it has to be done in person at one of the state’s five racetrack casinos. Last year, the casinos had about $9.3 million in sports betting revenue, according to the Nebraska Racing and Gaming Commission, resulting in less than $2 million in tax revenue.

If the initiatives are approved, online sports betting companies would be allowed to partner with the state’s casinos to offer online betting. WarHorse Casinos is planning to partner with major online sports betting companies DraftKings and FanDuel.

The certification to appear on the ballot comes weeks after a national group asked the Nebraska Accountability and Disclosure Commission to investigate potential international influence in Tax Relief Nebraska's funding.

FanDuel and Roar Digital, a subsidiary of MGM, have donated more than $3.5 million combined to Tax Relief Nebraska. Michael Teter, executive director at the Legal Accountability Center, which filed the complaint, said the two gambling giants are owned by companies with leadership and headquarters in Ireland and the United Kingdom. That’s enough to warrant an investigation, he said.

Supporters of online sports betting have estimated such a move will bring in more than $30 million in gaming taxes annually just from sports betting.

Opponents say online betting is much more addictive and that legalizing it in Nebraska will lead to more problem gambling. They argue that the increase in tax revenue is not worth the increase in problems it will bring.

Secretary of State Bob Evnen said now that the petitions have been certified, his office will hold public hearings in each of Nebraska's three congressional districts, the dates and locations of which are still to be determined.

The office also said that it is still verifying signatures for the Protect Nebraskans' Initiative and Referendum Powers Constitutional Amendment petition and the Fairness for Girls Constitutional Amendment petition. It has until Sept. 11 to finish that work.