A new coalition featuring two Nebraska statewide elected officials and current and former Husker football coaches has launched a campaign against ballot measures that would legalize online sports betting in Nebraska.
The Plains Sentinel and Nebraska Public Media report “Save Nebraska Sports” was formally launched Thursday at the Nebraska State Capitol.
State Auditor Mike Foley, State Treasurer Joey Spellerberg, Nebraska football assistant coach Ron Brown and Nebraska Family Alliance Executive Director Nate Grasz appeared at the announcement. Former Nebraska football coach Tom Osborne, a longtime opponent of expanded gambling, provided a written statement that was read during the event.
The coalition is opposing two initiatives sponsored by Tax Relief Nebraska that have qualified for Nebraska’s November 3 general-election ballot.
One measure would amend the Nebraska Constitution to authorize sports wagering over the Internet when the bettor is physically located in Nebraska. A companion statutory initiative establishes the regulatory and tax framework for online wagering.
Nebraska currently permits sports betting at licensed casino locations but not statewide wagering through phones and other internet-connected devices.
Foley challenges property-tax argument
A central argument on Thursday concerned the amount of property-tax relief that online sports wagering could generate.
Foley accused supporters of overstating the benefits to Nebraska taxpayers.
“As the state auditor, I feel an obligation to inform the citizens — you are being scammed,” Foley said, according to Nebraska Public Media, describing the property-tax argument as a false promise.
A study commissioned by Tax Relief Nebraska presents a different assessment.
The Nebraska Examiner reported in April that research by Eilers & Krejcik Gaming estimated legal online sports betting could produce just under $87 million in new Nebraska tax revenue during its first five years.
Under the proposed distribution formula, approximately 70 percent of that revenue — roughly $61 million over five years — would go toward property-tax credits.
Opponents argue those figures need to be considered alongside the amount gamblers would have to lose for the state to collect the projected tax revenue.
Spellerberg said Thursday that the revenue projection would correspond to hundreds of millions of dollars in losses by bettors.
He also raised concerns about the financial effects of making wagering immediately accessible through smartphones, including potential impacts on household savings, debt and younger Nebraskans.
Concerns about student-athletes
The coalition also focused on the effect expanded sports wagering could have on athletes.
Nebraska Public Media reports speakers cited NCAA research showing 36 percent of men’s basketball athletes surveyed had experienced social-media abuse.
Osborne said in his statement that athletes already face substantial pressure over their performances and that sports wagering can change the nature of criticism they receive.
“Some of the harshest criticism athletes receive is not for losing, but for failing to beat a point spread,” Osborne said in the statement read by Grasz.
Osborne said online sports gambling can turn an athletic competition into a gambling exercise in which other people’s money depends on the performance of athletes.
Brown also spoke strongly against expanded gambling, arguing that easier access could contribute to addiction and other social consequences.
Save Nebraska Sports says additional athletes and coaches are expected to participate in the campaign leading up to the November election.
Supporters say Nebraska is losing revenue
Supporters of online wagering argue Nebraska is already losing gambling revenue because residents can travel to neighboring states or use other alternatives to place bets.
Tax Relief Nebraska spokesman Jordan McGrain has said legalization would create a regulated marketplace, keep more wagering revenue in Nebraska and generate additional money for property-tax relief.
“We have to figure out how we’re going to generate new revenue for property tax relief,” McGrain previously told the Plains Sentinel.
The Nebraska Examiner reported the two Tax Relief Nebraska initiatives qualified for the ballot in August after exceeding both the statewide signature thresholds and Nebraska’s geographic distribution requirements.
If voters approve both proposals, licensed Nebraska racetracks and their partners could offer online sports wagering to people physically located within Nebraska.
The Nebraska Racing and Gaming Commission would be responsible for adopting regulations governing the expanded market.
The regulatory proposal would allow gaming operators to use no more than two online platforms at a time, with wagering servers required to be located in Nebraska.
Campaign takes shape ahead of November vote
The opposing campaigns now set up a debate that goes beyond whether Nebraska should permit another form of gambling.
Tax Relief Nebraska is emphasizing regulation, retaining wagering activity and generating additional tax revenue.
Save Nebraska Sports is focusing on gambling losses, addiction, household finances, student-athletes and whether the amount of property-tax relief is significant enough to justify expanding gambling to smartphones throughout the state.
Nebraska voters will ultimately decide the two measures in the November 3 general election.
The Plains Sentinel’s John Gage reported on Thursday’s Save Nebraska Sports announcement. KLIN also reviewed coverage from Nebraska Public Media and the Nebraska Examiner for additional reporting and background.