WarHorse and SBA Take Sports Betting Fight Directly to Nebraska Voters
Nebraska's biggest casino company and the nation's largest online sportsbooks are bypassing lawmakers and taking their fight for mobile sports betting directly to voters.
WarHorse, which operates casinos in Lincoln and Omaha, is partnering with the Sports Betting Alliance (SBA) for a pair of ballot initiatives aimed at placing online sports betting before voters in November. The SBA includes major sportsbook operators like DraftKings and FanDuel.
The campaign will roll out petitions in the coming days for a proposed constitutional amendment that would allow licensed racetrack operators to partner with their racetrack enclosures to launch online sports betting platforms. The ban on betting on in-state college teams will remain in place, but the campaigners plan to revisit it later.
Why WarHorse Is Taking the Fight to Voters
The push comes after repeated failures to move online sports betting through the Legislature, even as neighboring states continue to capture Nebraska wagering dollars.
Speaking to First Alert 6, WarHorse Casino’s Government Relations Director, Lynne McNally, stated that the state is losing millions of dollars in tax revenue due to the absence of online sportsbooks.
She projected that legalization would result in WarHorse contributing an additional $34 million in tax revenue annually, as many people currently travel to neighboring Iowa to place online wagers. McNally said the plan is to “go out into the field” in the coming week to start passing the petition.
The proposal sets a 20% tax rate, with a portion of the revenue directed toward property tax relief. Because Nebraska’s “single-subject rule” limits ballot measures to one issue, organizers must file two separate petitions.
One would amend the state constitution to permit mobile wagering, while the other would make the necessary statutory changes to implement the system.
They’ll have a tight deadline to obtain the required signatures from 10% of registered voters for the constitutional amendment. That’s roughly 125,412 signatures. Organizers must submit the petition in early July, which is four months before the November 3 election.
The state will then spend 45 days verifying that all signatures came from registered voters. Organizers must also collect signatures equal to 5% of the registered voters in 39 of the 93 Nebraska counties.
No Luck in the Legislature
Retail sports betting went live in June 2023, following an overwhelmingly successful petition campaign and voter referendum in November 2020. WarHorse played a central role in that campaign. Attempts in the Legislature to legalize online wagering have faced strong headwinds in recent years.
Two bills from last year carried over for the current legislative session. Legislative Bill 421 (LB 421) proposes a structure similar to that of the petition. That includes a 20% tax rate and partnering with racetracks. It would allocate 90% of online sports betting tax revenue to the Property Tax Credit Cash Fund.
Legislative Resolution 20CA (LR 20CA) is seeking a public vote on the matter through the legislative process. However, appetite among lawmakers didn’t seem strong. During committee debate, Senator Jared Storm advised bill sponsors to gather signatures rather than “have the legislature do it for them.”
That resistance is now driving WarHorse and the SBA to pursue a direct-to-voter strategy, turning online sports betting into a statewide ballot initiative.
With 59% of voters in the state supporting sports betting in a recent SBA poll, supporters are optimistic.
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