DraftKings has made its entry into its 30th state, while FanDuel has expanded to its 26th with their respective launches in Arkansas through partnerships with local casinos.
The two platforms officially commenced operations on Friday via collaborations with Southland Casino and Oaklawn Casino, following the Arkansas Racing Commission’s approval on February 26 for vendor licensing.
DraftKings has teamed up with Southland located in West Memphis, and FanDuel has partnered with Oaklawn in Hot Springs. Both companies were already operating prediction market platforms in Arkansas, except these platforms did not feature sports betting options.
“Arkansas has a vibrant sports fan community and is a pivotal market for growth,” said Karol Corcoran, Managing Director of FanDuel Sportsbook.
Operational Structure Governed by State Regulations
In Arkansas, online sports betting is permitted under a regulation that mandates casinos to keep 51% of sportsbook revenue when partnering with third-party providers. Under this framework, DraftKings and FanDuel serve as vendors, providing technological platforms and odds services, while the casino partners manage day-to-day operations.
At Oaklawn, FanDuel’s system has been seamlessly integrated into its sportsbook offerings. Zack Gillham, Vice President of Racing and Wagering, highlighted the operational transition: “Previously, our app relied on multiple vendors to function. Now, with one main vendor, making changes is far more efficient, as fewer individuals need to be coordinated.
Southland Casino has transitioned from a Betly-operated sportsbook, which ceased operations, to a DraftKings-driven platform.
“I have a bias as a DraftKings employee, but I’ve engaged with numerous sports betting applications, and this one stands out as the easiest to navigate and utilize,” commented Johnny Avello, Director of Race and Sports Operations at DraftKings.
Current Operators Maintain Their Market Share
Before the arrival of these national operators, Saracen Casino dominated Arkansas’s online sports betting market with its BetSaracen platform, reporting $329 million in handle, 98% of which originated from online bets.
Oaklawn was the second highest with $202 million in online handle, while Southland recorded $93 million.
Saracen had previously advocated for limitations on out-of-state operators before the licensing evaluation process. In response to the launches, Saracen’s Chief Marketing Officer Carlton Saffa addressed the contributions to state taxes.
“As Arkansans, we take pride in what we have developed. Not only is BetSaracen the state’s leading sportsbook, but it was also established by Arkansans for Arkansans. Our operations benefit the public, whether they choose to wager with us or not,” Saffa stated.
“We have already contributed over $12 million in gaming taxes from our sports betting activities alone. Conversely, national operators have shown that their model contributes minimal to no tax revenues to the states they operate in. It’s probable that Arkansas will see reduced, not increased, tax income with these out-of-state companies entering the market.
Launch Occurs Amid Heightened Betting Activity
The introduction of these services coincides with the NCAA March Madness tournament, one of the busiest wagering periods in the United States. The American Gaming Association anticipates that there will be $3.3 billion wagered legally on this year’s games.
Alongside the launch, promotional initiatives associated with the Arkansas Razorbacks were unveiled. DraftKings and Southland rolled out a performance-linked proposition. Avello elaborated: “By placing a $1 bet on Arkansas to score a point, you win $50, which can be utilized for future wagers.
The Razorbacks progressed to the Sweet 16 and are set to compete against the Arizona Wildcats on March 27.
The Arkansas Racing Commission has signaled that it will oversee market dynamics in light of the new platforms. State officials anticipate variations in revenue generation following the introduction of DraftKings and FanDuel.
Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration, previously described the inclusion of these two operators as a “game-changer,” highlighting the potential for tax revenue to surpass the millions recorded the previous year.