Sportsbook Leaders Fold on Nebraska Online Sports Betting Campaign

Leading Sportsbook Operator Fails Online Sports Betting in Nebraska

Four of the nation's largest sports betting operators have abandoned efforts to bring online sports betting to Nebraska.

DraftKings, FanDuel, BetMGM and Caesars Sportsbook, along with the Winnebago Tribe of Nebraska, commissioned a survey earlier this year to gauge support among Cornhusker State residents for expanded online sports betting. The poll found that about 57% of Nebraskans support online sports betting.

The slim majority was not enough to convince the four sports betting giants to move forward with the legislative effort. With state lawmakers in Lincoln refusing to pass a law that would allow online sports betting within state borders, sportsbooks must launch a ballot initiative to put the issue to voters in November.

The sportsbooks and tribes say it will cost up to $7 million to collect the required 122,000 resident signatures and launch a marketing campaign to rally the public against anti-gambling forces. With fewer than 6 in 10 residents expressing support for the sports betting issue in a state with a population of less than 2 million, the risks outweigh the potential business benefits.

As a result, sports betting in Nebraska remains limited to retail betting at the state's racetracks, where permanent casinos are being built.

Next chance 2026

Unless the Republican-controlled Legislature changes course and embraces online sports betting, Nebraskans will have to wait until at least 2026 to make their voices heard on gambling issues. The development is a big win for online sports bettors in Iowa, as many Nebraska sports bettors in the state's two most populous cities, Omaha and Lincoln, regularly cross the Missouri River to place bets .

Lance Morgan, CEO of Ho-Chunk Inc., the economic development arm of the Winnebago Tribe, blamed the findings for skewing online sports betting and canceled plans for 2024.

If you're at 57%, there's a chance you're going to fail unless you put a lot of resources into it. There's no point in going to war if you don't have the war chest," Morgan told the Lincoln Daily Star.

Morgan said the tribe was unwilling to fund the event after four sportsbooks jumped ship. Ho-Chunk is currently spending $400 million to build permanent casinos in Lincoln and Omaha.

Morgan said the collapse of online sports betting schemes was "part of the problem for sparsely populated countries".

Legislative Solutions

Nebraska lawmakers have the power to legalize online sports betting through legislative action.

In 2020, Nebraska voters amended the state constitution to allow commercial casinos offering slot machines, table games and sports betting at licensed racetracks. The referendum passed easily with 65% support. Referendum approves creation of Nebraska Gaming Commission.

Morgan wants state lawmakers to wake up and believes that introducing online sports betting will only increase the state's gambling tax advantage and make it easier for consumers to participate in a regulated environment.

“Hopefully as [sports betting] becomes more politically acceptable, we can get it passed in the unicameral system in the next few years,” Morgan said.

Legal online sports betting exists in four of Nebraska's six neighboring states. In addition to Iowa, bettors can place bets online in Wyoming, Colorado and Kansas. In South Dakota, sports betting is only available in Deadwood.