Posted on: February 26, 2026, 05:25h.
Last updated on: February 26, 2026, 05:25h.
- DraftKings and FanDuel receive approval in Arkansas
- The sportsbooks aim to launch ahead of March Madness
- Arkansas boasts significant untapped potential in its sports betting market
Leading sports betting platforms DraftKings and FanDuel are making their way to Arkansas.
On Thursday, the Arkansas Racing Commission (ARC) greenlit DraftKings and FanDuel’s sports betting applications. This comes nearly four years after both companies cited a rule mandating that at least 51% of revenue from sports betting be retained by the host casino, which made the market less appealing.
DraftKings is entering the market via a partnership with Southland Casino Hotel in West Memphis, while FanDuel has teamed up with Oaklawn Racing Casino Resort in Hot Springs. Both racinos were authorized to operate as full-fledged casinos following a statewide ballot in 2018, allowing for slot machines, live dealer games, and sports betting options.
They aim to launch just in time for the excitement of March Madness.
“We are thrilled to collaborate with Southland Casino Hotel to introduce DraftKings’ premier mobile sportsbook to Arkansas and showcase our exceptional sports betting services,” expressed Gregory Karamitis, DraftKings’ executive vice president and general manager.
“We’re thankful to the Arkansas Racing Commission for endorsing us as a vendor and are eager for the next steps,” stated a representative from FanDuel.
Why Now?
Recently, FanDuel and DraftKings have shifted their focus more towards prediction markets rather than lobbying for sportsbook opportunities. Their decision to pursue Arkansas has raised some eyebrows.
Just over a year ago, in January 2022, both companies informed ARC that the 51% revenue share requirement would deter their participation in the market. They warned that their absence would diminish state tax revenues and limit consumer options, ultimately benefiting offshore sportsbooks.
“This requirement makes it financially unfeasible for leading national online sports betting operators to collaborate with Arkansas casinos,” commented a representative from FanDuel at the time.
“Enforcing this requirement will drastically harm the player experience and prevent players from transitioning from the existing illegal offshore market,” warned a DraftKings lobbyist.
Despite these protests, ARC maintained the rule, causing Arkansas’s sports betting landscape to remain relatively limited compared to similarly sized states. However, this could soon change with the entry of FanDuel and DraftKings.
Room to Grow
Representatives from Southland and Oaklawn believe that the addition of DraftKings and FanDuel will significantly boost gaming activity and associated revenues. There appears to be ample opportunity for growth.
With a population exceeding 3.1 million, Arkansas ranks as the 34th most populous state. In contrast, Kansas, which has a similar population of around three million, also allows online sports betting and features both DraftKings and FanDuel.
Arkansas sportsbooks, including Southland’s Betly Sportsbook, Oaklawn Sports, and BetSaracen from Saracen Casino, reported a gross revenue of just $59.7 million last year. In comparison, Kansas generated over $292.2 million in sports betting revenue last year, and is also home to Caesars Sportsbook, Fanatics Sportsbook, and bet365.