After a year-long wait, two of the nation’s largest sportsbooks may be coming to Arkansas. On February 18, state regulators confirmed that both DraftKings and FanDuel have officially submitted applications to enter the state’s mobile sports betting market.
Scott Hardin, a spokesperson for the Arkansas Department of Finance and Administration, told KNWA/Fox 24 that, pending regulatory approval, both companies would be eligible to partner with any of the state’s three licensed casino sportsbooks.
Those casinos are Oaklawn Casino in Hot Springs, Saracen Casino in Pine Bluff, and Southland Casino in West Memphis. Hardin said that if the applications are approved, casinos in the state will have the option to work with FanDuel or DraftKings as third-party operators for their mobile sports betting platforms.
The decision now rests with the Arkansas Racing Commission, whose commissioners haven’t set a date for reviewing them, although they are considering meeting later this month.
“The partnership between an Arkansas casino and a third party is allowed if the Arkansas Racing Commission approves the third party and a casino chooses to do business with that company,” Hardin said.
If the applications receive regulatory approval, Arkansas would join a growing number of states where both operators are active. FanDuel offers sports betting in 26 states and Puerto Rico, while DraftKings operates in 27 states.
Arkansas’s Sports Betting Rules Have Limited National Operators
After legalizing sports betting in 2018, Arkansas took a different path than most other states. Instead of opening the market to multiple commercial sportsbook operators, the state allowed in-person sports betting only at its three licensed casinos. While the state legalized mobile sports betting in March 2022, it did so with a condition: requiring all digital platforms to partner with one of the state’s three licensed casinos.
As part of the partnership, the local casino must retain at least 51% of the net revenue generated by the mobile platform. This requirement became the main hurdle keeping sportsbooks from entering the state’s betting market. In most states with legalized sports betting, the opposite is true: the majority of mobile revenue goes to national operators.
Many sportsbooks viewed the 51% revenue-share rule as a deal-breaker because they typically operate at much higher margins. However, the DraftKings and FanDuel filings suggest that at least two operators have changed their minds and are willing to work within these specific constraints.
Current Betting Options in Arkansas
As it stands, Arkansas residents who want to bet on sports are limited to the proprietary mobile apps managed directly by the state’s three land-based casinos. If regulators give DraftKings and FanDuel the green light, that could soon change. While the state can grant licenses to up to four casinos, last year, local opposition effectively blocked the opening of a fourth property in Pope County.
DraftKings hasn’t been completely absent from the Arkansas market, as it has maintained a presence with its Daily Fantasy Sports even though its full-scale sportsbook hasn’t been available in the state.
If the Racing Commission approves the applications, it doesn’t mean a launch is imminent. Before DraftKings and FanDuel could open up shop, each casino would still need to independently decide whether to enter into a partnership with either operator.
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