The Arkansas Racing Commission is set to convene on February 26 at 11 a.m. in Little Rock, where they may review applications aimed at introducing two of the largest sports betting brands in the U.S. to collaborate with casinos in Arkansas.
Scott Hardin, the spokesperson for the commission, confirmed that DraftKings has submitted an application to partner with Southland Casino Hotel in West Memphis, while FanDuel has applied to team up with Oaklawn Racing Casino Resort in Hot Springs. Although the agenda for the meeting is not finalized, Hardin indicated that the commission may vote on these applications during this session, as reported by 5News.
According to current commission guidelines, a minimum of 51% of the revenue from these partnerships must be allocated to the in-state casino partner. Hardin mentioned that national sportsbook companies have previously voiced their concerns regarding this requirement.
“They were not in favor of this rule,” Hardin stated. “Clearly, they have different agreements in other states, and at least at that time, some expressed worries that the 51% requirement might prevent them from entering the Arkansas market. However, that has not proven to be the case.”
If the applications receive approval, the collaborations would enable co-branded mobile betting platforms associated with the licensed casinos. Hardin explained how this could revolutionize the sports betting landscape in the state.
“This would empower the sportsbooks to leverage the technology offered by DraftKings and FanDuel,” Hardin elaborated. “You could witness transformations in the apps themselves, alongside considerable marketing efforts, and I genuinely believe this would significantly alter the marketing approach across the state.”
Hardin further detailed the potential practical implications of such approval.
“If the Arkansas Racing Commission gives its nod, you may expect to see a co-branded application between either FanDuel or DraftKings and one of the state’s casinos,” he articulated. He further noted that the revenue-sharing model could deter some firms from entering the Arkansas market.
The proposals have encountered resistance from various sectors within Arkansas’ casino landscape. Carlton Saffa, Chief Market Officer for Saracen Casino Resort, remarked that this step diverges from the previously unified stance held by the state’s casinos.
“This stands in stark contrast to what all three casinos unanimously believed was the best course of action just about four years ago,” Saffa expressed.
Saffa also voiced concerns regarding the transfer of decision-making power to executives based outside of Arkansas. “It raises alarms when individuals, like those from FanDuel based in New York or DraftKings in Boston, are making operational decisions,” Saffa conveyed. “Having Arkansans involved in business operations within the state holds significant value.”
Opponents, including representatives from other Arkansas casinos, argue that these partnerships could violate Amendment 100, which voters approved in 2018. This amendment mandates that sportsbooks be run by licensed casinos rather than independent third-party firms.