Published on: February 24, 2026, 11:35 AM.
Updated on: February 24, 2026, 11:35 AM.
- DraftKings and FanDuel have submitted applications for sports betting in Arkansas.
- The leading sportsbooks are requesting online betting licenses.
- Arkansas law requires that 51% of an online sportsbook’s revenue be retained by the affiliated casino.
Major sportsbook players DraftKings and FanDuel are poised to enter the Arkansas market, nearly four years after mobile sports betting was legalized.
The legalization of sports betting, both in-person and online, in Arkansas stemmed from Issue 4. This constitutional amendment was passed in 2018, allowing up to four casinos, although currently, it seems only three will be operational.
The referendum enabled the establishment of new casinos in Jefferson and Pope counties, while existing facilities like Southland and Oaklawn racinos were authorized to transform into full-fledged casinos, complete with slots, live table games, and sportsbooks.
A critical stipulation of the gaming regulations mandates that for online sports betting, a majority of the gross revenue stays with the partnered casino rather than the operating third party, such as DraftKings or FanDuel. The 51% provision, criticized by many within the sports betting community, was designed to ensure that Arkansas primarily reaps the benefits of its online sports betting initiative.
Casinos managing their own online sportsbooks retain all revenues, (after taxes). Currently, Southland Casino Hotel operates Betly, Saracen Casino Resort has BetSaracen, and Oaklawn Racing Casino Resort runs Oaklawn Sports.
Why the Change Now?
DraftKings and FanDuel, along with their lobbying group, the Sports Betting Alliance, have consistently opposed the 51% revenue-sharing requirement. They argue that this stipulation diminishes the attractiveness of the market for potential participants.
So, what has prompted DraftKings and FanDuel to pursue Arkansas now?
The American Gaming Association highlights that Arkansas sports betting revenues surged by nearly 30% from 2023 to 2024, with sportsbooks keeping $48.2 million of the total wagers. Approximately 90% of this revenue was generated online. The upward trend continued into 2025, with oddsmakers retaining about $59.7 million from wagers, marking a 23% year-over-year increase.
It’s important to note that these figures are before the state’s taxation of 13-20% on the gross gaming revenue of each casino, along with a federal excise tax of 0.25% on all sports bets placed.
Limitless Potential for Growth
By entering the Arkansas market, DraftKings and FanDuel could significantly enhance online sports betting through their well-established brand recognition and extensive marketing abilities. If they didn’t foresee growth potential, they wouldn’t have filed their applications.
“This would enable sportsbooks to leverage the technology offered by DraftKings and FanDuel. We could witness changes in the apps and increased marketing efforts, which could transform the overall marketing landscape in the state,” Scott Hardin, a spokesperson for the Arkansas Racing & Gaming Commission, shared with 5NEWS.
The Arkansas Racing and Gaming Commission is set to review the online sportsbook license applications during their meeting scheduled for Thursday, February 26, in Little Rock.