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Voters in three states rejected gambling expansion in the Nov. 3 election. Nebraska turned down online sports betting, while communities in Indiana and Virginia blocked proposed casino and horse racing wagering facilities.
The outcomes leave existing gambling arrangements unchanged. In Nebraska, DraftKings and FanDuel each gave $10.4 million to a campaign for online betting, but voters still denied them access to the state’s mobile market.
Nebraska rejects mobile sports betting
Nebraska voters defeated two linked ballot measures that would have allowed online sports wagering through the state’s licensed racetrack casinos. Initiative 441, the statute that would have regulated mobile sportsbooks, failed 54.5% to 45.5% with 91% of votes counted, according to the Associated Press. Initiative 440, a constitutional amendment, failed by a nearly identical margin. Online betting needed both to pass.
Tax Relief Nebraska, the committee behind the measures, raised nearly $22.5 million through Oct. 29. DraftKings and FanDuel supplied $10.4 million each.
Nebraska voters approved casino gambling at the state’s racetracks in 2020, and legal sports bets must still be placed in person. The rejected measures would have let each racetrack casino run two online sportsbook brands, for up to 12 statewide. Nebraska’s 20% tax on gaming revenue would have applied, with 70% of the proceeds going to property tax relief.
Flutter Entertainment CEO Dan Taylor, whose company owns FanDuel, said on the company’s third-quarter earnings call Wednesday that the result was disappointing. He added that Flutter still sees a “strong pipeline of further state openings,” Legal Sports Report reported.
A WarHorse Casino executive said the state is losing tax revenue on betting that already happens online. Meanwhile, prediction markets continue to offer sports event contracts in Nebraska under federal oversight.
Outspent opponents carry most of Nebraska
Save Nebraska Sports led the opposition with far fewer resources. State Treasurer Joey Spellerberg, a backer of the group, said it was outspent 20 to 1.
Former Nebraska football coach Tom Osborne led a letter from 45 current and former athletes and coaches opposing the measures. They cited game manipulation, constant gambling advertising and harassment of athletes.
US Sen. Pete Ricketts argued the promised tax relief would amount to about $1 a month for the owner of a $250,000 home, while Nebraskans would lose an estimated $800 million gambling.
Support was concentrated around Omaha, where Douglas and Sarpy counties each backed Initiative 441 by 52% to 48%. Lancaster County, home to Lincoln, voted against it 58% to 42%. Opposition was stronger in central Nebraska, reaching about 64% in Buffalo County and 60% in Hall County.
Northeast Indiana shuts down casino plan
Voters in Allen, DeKalb and Steuben counties each rejected a referendum that would have allowed a casino operator to seek a new license in northeast Indiana, according to 21Alive.
Final unofficial results show:
- DeKalb County: 64.6% opposed (7,374 to 4,043), the strongest opposition of the three.
- Allen County: 59.6% opposed (61,310 to 41,625).
- Steuben County: 58.7% opposed.
House Bill 1038, signed by Gov. Mike Braun, allowed the Indiana Gaming Commission to award one new license in whichever of the three counties approved a referendum. The winning bidder would have had to invest at least $500 million.
Supporters pointed to jobs, tourism and local revenue, citing a commission study that projected $204 million in annual gaming revenue and $61 million in yearly state taxes for an Allen County casino. Opponents raised concerns about problem gambling, bankruptcies and crime.
With all three counties voting no, no host county remains. The law also bars the question from returning to the ballot in those counties, so another vote would need new legislation.
Virginia towns turn down Rosie’s
Voters in Amherst County and the town of Pulaski rejected referendums on pari-mutuel wagering at satellite facilities, Virginia Business reported. The votes keep Churchill Downs, which operates eight Rosie’s Gaming Emporium locations in Virginia, from opening new ones in either community.
Amherst County voted 7,057 to 6,874 against, a margin of 183 votes (50.66% opposed). It was the county’s second rejection, after a 7,293-to-6,189 defeat in 2021. In Pulaski, about 56% of voters opposed the measure.
Supporters said a Rosie’s could bring in about $2 million a year in tax revenue. Opponents cited addiction and crime concerns.
Where gambling expansion goes from here
All results are unofficial until certified, though the margins show every proposal failed. Nebraska’s count stood at 91% in the report cited above.
For operators, further expansion in these places would require new legislation or, where the law allows, another vote. For now, the election leaves existing restrictions in place.
