Nebraska voters weigh online sports betting as opponents warn of addiction risks

OMAHA, Neb. (KMTV) — Nebraska voters are deciding whether to open the door to online sports betting, a proposal supporters say could keep gambling revenue in the state but opponents warn could make gambling addiction more accessible.

Initiatives 440 and 441 would provide the framework for legalizing and regulating online sports betting in Nebraska.

Initiative 440 would amend the Nebraska Constitution to allow state lawmakers to authorize online sports betting. Initiative 441 would establish the law and regulations governing it.

The measures come as sports betting continues to generate billions of dollars nationwide. The American Gaming Association estimates bettors will wager about $30 billion on the NFL season this year.

Supporters of the Nebraska measures argue some residents are already placing bets through platforms outside the state's regulated gambling system, leaving Nebraska without the potential tax revenue.

“We’re just losing so much revenue to other states and unregulated platforms,” said Jordan McGrain, a petition sponsor for Initiatives 440 and 441.

Opponents, however, are focusing on the potential consequences of putting sports betting directly on people's phones.

Steve Frazee, chief impact officer at Omaha's Open Door Mission, said the organization works with people struggling with addiction and worries easier access to gambling could compound those challenges.

“That’s just for our folks something that is almost impossible for many of them to say no to,” Frazee said.

Frazee, who has helped people in Omaha for more than 15 years, said he has watched gambling options expand in Nebraska, from casinos to slot machine-style gaming in some stores. Allowing betting by phone, he said, would remove another barrier.

“The only other thing to get into your pocket is on a phone,” Frazee said.

“Just because everybody else does it doesn’t mean that Nebraska has to do it,” he added.

Pat Loontjer, executive director of Gambling with the Good Life, is also opposing the measures.

“We want to stop it before it even begins,” Loontjer said.

Loontjer said she is particularly concerned about young people gaining easier access to betting through their phones and potentially developing gambling problems.

“It just breaks your heart,” she said.

Frazee warned that the impact could extend beyond people who are already struggling with addiction.

“For a lot of people who aren’t in trouble now, it’s going to be a disaster,” he said.

If online sports betting is legalized, portions of the money generated by sportsbooks would be directed to several state funds, including the Compulsive Gamblers Assistance Fund, Environmental Trust Fund and Nebraska State Fair Board.

The Nebraska Secretary of State's Office is holding a hearing on Initiatives 440 and 441 at the Omaha Public Library's Millard Branch on Saturday, beginning at 1:30 p.m.

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