DraftKings and FanDuel put more than $20 million behind the Nebraska ballot campaign, while election results elsewhere could change the prospects for gambling legislation in 2027.
Nebraska voters have rejected two measures that would legalize online sports betting, dealing a setback to an industry-backed campaign that pitched legalization as a way to lower property taxes.
Elsewhere, the Second Circuit denied Kalshi and Coinbase emergency relief in three prediction market appeals, Brazil’s Supreme Court heard arguments over the country’s betting ban, and FanDuel published new details about how it flags potentially harmful gambling.
The Big Story: Nebraskans Reject Online Sports Betting, Despite $20 Million Campaign
Ballots in Nebraska are still being counted. But with around 90% of votes recorded at the time of writing, unofficial results show roughly 55% voted against both online sports betting measures.
Initiative 440 would amend the state constitution to allow lawmakers to authorize online sports wagering. Initiative 441 would legalize and regulate it under state law. Nebraska currently limits sports betting to in-person wagers at racetrack casinos.
DraftKings and FanDuel contributed more than $20 million to the campaign behind the measures. BetMGM and Fanatics also backed the initiative financially. Tax Relief Nebraska gathered enough petition signatures to put the proposals directly to voters after legalization efforts stalled in the Legislature.
Proponents pitched online sports betting as a means to capture tax revenue from wagers residents already place across state lines, particularly in Iowa. The proposal would direct 70% of the tax revenue to property tax relief and require online sportsbooks to partner with a Nebraska racetrack casino.
But while the campaign received enough signatures and substantial financial backing, it faced strong opposition.
State Treasurer Joey Spellerberg and State Auditor Mike Foley appeared in an ad opposing the measures for Save Nebraska Sports. The campaign also drew support from 45 current and former Nebraska Cornhuskers athletes and coaches, including former coach Tom Osborne, who signed a letter opposing the proposals.
Opponents argued that making betting available on phones would increase exposure to gambling and that the projected property tax savings were too small to justify the expansion.
What Four State Elections Could Mean for Gambling Expansion
In Texas, Lt. Gov. Dan Patrick, a Senate gatekeeper and the biggest opponent of gambling, lost to Vikki Goodwin. Goodwin supports putting casinos and sports betting before voters. Las Vegas Sands has spent millions backing efforts to legalize casinos in the state.
In the governor race, Gina Hinojosa defeated incumbent Greg Abbott. In 2023, she voted against a sports betting amendment, but her current stance is unknown. Abbott at one point said he is open to sports betting, before changing his stance amid gambling addiction concerns.
In Georgia, Keisha Lance Bottoms and Josh McLaurin won the governor’s and lieutenant governor’s races. Bottoms has previously proposed casino revenue to fund expansion of early childhood education.
In Ohio, Gov.-elect Amy Acton has expressed openness to online casinos as a funding source for schools and child care. Outgoing governor Mike DeWine strongly opposed any gambling expansion, and said he regretted signing the sports betting legalization bill.
In New Mexico, Deb Haaland’s win puts a former U.S. interior secretary, who led the Interior Department when it defended the Florida–Seminole gaming compact in court, in the governor’s office. Her approach to tribal gaming will be worth watching.
The Daily Wire
Second Circuit Denies Kalshi and Coinbase Injunctions Pending Appeal, Kalshi and Iowa Seek Stay
The Second Circuit denied requests from Kalshi and Coinbase for injunctions pending appeal of three cases. The panel is considering Kalshi’s cases against New York and Connecticut together with Coinbase’s case against Connecticut.
In its short November 3 decision, the panel concluded that the companies “failed to make the required showing that an injunction pending appeal is warranted.” All three appeals remain pending.
Separately, Kalshi and Iowa officials jointly asked a federal judge to pause the district court case while the Eighth Circuit reviews the September denial of Kalshi’s preliminary injunction request. Kalshi’s opening brief is due December 7.
Brazil’s Supreme Court Hears Challenges to Betting Ban
Brazilian Supreme Court Justice Luiz Fux held a public hearing on President Lula’s provisional measure that shut down the country’s regulated betting market.
Representatives of 28 industry groups, soccer clubs and the government attended the meeting. Industry groups that brought the challenge called for the court to suspend the ban. They argued that the government abruptly reversed a regulatory framework that operators and their commercial partners had relied on.
Flávio Willeman, vice-president of Flamengo soccer club, said the ban could cost the club up to 430 million reais ($78.3 million) in annual revenue. He said about 1,200 jobs are threatened. The club’s sponsorship agreement with Betano includes 268.5 million reais ($48.9 million) annually before performance bonuses.
Government representatives framed the ban as a consumer protection measure. Justice Minister Wellington César Lima e Silva said that betting is connected to organized crime and money laundering.
Fux has yet to rule on the request to suspend the measure. In Congress, the measure’s initial 60-day period runs through November 23 with an option to extend for another 60 days.
Senators Question X Over Treatment of Polymarket Ads
Four Democratic senators asked X why users appeared unable to report Polymarket ads through its standard interface. The senators said the reporting option was available on a Kalshi ad they reviewed.
They questioned whether Polymarket received preferential treatment and raised concerns about Donald Trump Jr.’s role as an adviser to and investor in the company.
Sens. Catherine Cortez Masto, Adam Schiff, Richard Blumenthal and Jacky Rosen asked whether X’s partnership with Polymarket affects how the platform applies its advertising policies. The lawmakers also asked how X handles ads for sports event contracts in states where their legality is disputed. The senators requested a response by November 30.
Polymarket Unit Clears NFA Hurdle to Become a Futures Broker
The National Futures Association has approved Polymarket affiliate PM Derivatives LLC to register as a futures commission merchant (FCM), Reuters reported. The unit still needs CFTC approval before it can operate as an FCM.
An FCM can accept customer orders and hold customer funds. That would give Polymarket a brokerage arm alongside its existing federally regulated U.S. exchange.
PM Derivatives plans to require customers to fully collateralize positions when they trade, Reuters reported.
FanDuel Details Problem Gambling Detection Amid Congressional Scrutiny
FanDuel published a Fast Facts page detailing how it identifies potentially harmful gambling, verifies customers’ ages and reviews player activity.
The operator says it conducted 58,000 manual responsible gaming reviews and blocked one million account creation attempts without verified identity over the past year. FanDuel says that it uses machine learning and risk scoring to flag behavioral patterns such as unusual deposits, excessive time on site, chasing losses, and concerning customer service interactions.
The page comes as Sen. Richard Blumenthal and Reps. Paul Tonko and Valerie Foushee have pressed FanDuel for details about its consumer protections and whether its VIP program targets vulnerable customers. The page does not discuss the VIP program.
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