Full Breakdown
Arkansas Expands Sports Betting with FanDuel and DraftKings
3/23/2026, 8:24:39 AM
Approval of New Sports Betting Partnerships
On February 26, 2026, the Arkansas Racing Commission unanimously approved sports wagering vendor licenses for FanDuel and DraftKings, allowing these national sportsbooks to operate in the state. This decision marks a significant expansion of Arkansas's sports betting landscape, which has been legal since 2019, with online betting launching in 2022. FanDuel will partner with Oaklawn Casino, while DraftKings will collaborate with Southland Casino Hotel, taking over their respective sports betting apps.
Historical Context of Sports Betting in Arkansas
The journey toward legal sports betting in Arkansas began with the Supreme Court's 2018 ruling that deemed the Professional and Amateur Sports Protection Act (PASPA) unconstitutional. Following this, Arkansas voters passed Issue 4 in November 2018, which authorized casino gaming and legal sports betting at licensed casinos. The first legal sports bet in the state was placed on July 1, 2019, at Oaklawn Racing Casino Resort.
In December 2021, the Arkansas Racing Commission established a 51% revenue-sharing rule, mandating that third-party operators, such as FanDuel and DraftKings, share 51% of their revenues with in-state partners. This rule was finalized by the Arkansas Legislative Council in February 2022.
Current Landscape of Sports Betting Operations
With the new partnerships, FanDuel and DraftKings can launch their betting operations immediately. The existing Oaklawn Sports app will transition to the FanDuel platform, while DraftKings will replace the previous Betly app at Southland Casino Hotel. Saracen Casino Resort continues to operate its BETSaracen app independently, as it has not partnered with a national sportsbook.
Arkansas's three commercial casinos—Southland Casino Hotel, Oaklawn Casino, and Saracen Casino Resort—are permitted to operate two sportsbook apps each. All betting operations must adhere to the established 51%-49% revenue split favoring in-state casinos.
Financial Implications and Regulatory Oversight
The Arkansas Racing Commission oversees all aspects of sports betting in the state, ensuring compliance with regulations. Sportsbooks in Arkansas are subject to a 13% tax rate on the first $150 million in gaming revenue, increasing to 20% on any revenue above that threshold. Between January and October 2025, Arkansas collected $7.229 million in tax revenue from sports betting.
Criticism and Opposition
While the expansion of sports betting has been welcomed by many, some critics express concerns regarding the high revenue-sharing requirement, which they argue may deter other potential operators from entering the market. This could limit competition and innovation within the state's sports betting ecosystem.
What's Next for Arkansas Sports Betting
As FanDuel and DraftKings launch their operations on March 20, 2026, they are expected to offer various betting markets, including spreads, money lines, and props for professional and college sports. However, prediction markets will not be included in this expansion. The success of these new partnerships will likely influence future developments in Arkansas's sports betting regulations and market dynamics.
