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State regulators on Thursday unanimously approved DraftKings’ and FanDuel’s applications to expand to Arkansas, setting the stage for a dramatic shift in the state’s $655 million sports betting market.
The Arkansas Racing Commission’s decision allows the nation’s top sports betting apps to begin operations in Arkansas immediately in partnership with local casinos.
Southland Casino Hotel in West Memphis partnered with DraftKings, while Oaklawn Hot Springs partnered with FanDuel. The casinos will remain the sportsbook licensees, with DraftKings and FanDuel operating as vendors.
There was no such deal in place for Saracen Casino Resort in Pine Bluff, which will continue with its BetSaracen app. A casino representative on Thursday urged commission members to reject DraftKings’ and FanDuel’s applications, raising concerns about predatory pricing, operational control and state tax revenue.
The state’s three casinos have operated their own branded betting apps since 2022, when the state approved mobile sports betting. Since then, mobile wagers have soared to account for about 90% of all sports betting in Arkansas.
Market growth is expected to accelerate substantially with DraftKings and FanDuel, supporters told the commission. Oaklawn General Manager Wayne Smith said FanDuel’s national profile will add to the “best-in-class” experience the casino offers bettors. A representative for Southland, which is owned by Delaware North Companies Inc. of Buffalo, New York, said the casino believes the partnership will also drive more in-person business.
The partnerships cover mobile sports betting only, not prediction markets that DraftKings and FanDuel offer in other states.
State rules require 51% of sportsbook revenue from outside operators to remain with the local casino partner.
DraftKings and FanDuel objected to the revenue-sharing rule when sports betting first launched in Arkansas. The sportsbooks, which typically receive 85%-95% of revenue, questioned the legality of the rule under the federal Commerce Clause.
Competitive Shift
The arrival of DraftKings and FanDuel raises the stakes for Saracen, the leader in Arkansas’ sports betting market.
Industry analysts rank the Pine Bluff casino’s mobile market share as the largest, thanks to its aggressive marketing, robust feature set, and strong user adoption. Southland ranks second and Oaklawn third.
But now, Saracen will compete with national platforms that dominate markets through scale, product depth, and data‑driven marketing. DraftKings and FanDuel are known to flood new markets with ads, sponsorships, and sign‑up offers to lock in users.
“You have no idea what the billboards in Arkansas are about to look like,” Saracen Chief Marketing Officer Carlton Saffa told the commission Thursday.
DraftKings operates in 26 states, plus Washington, D.C., and Puerto Rico. FanDuel operates in 23 states and Washington, D.C.
Saffa argued that some of the national operators’ promotions, like free play credits, are designed to corner markets while eliminating gaming tax obligations. He pointed to Missouri, where in December, the two operators together issued more than $100 million in free wagers to consumers, then wrote off the wagers against their taxable liability.
Arkansas also allows promotional deductions.
“This is absolutely going to expand gaming in the state of Arkansas, but what you can see from Missouri is, in the end, there’s a hell of a lot more money being gambled. Is there actually any more taxable revenue?” he said.
Saffa also questioned whether the partnerships comply with Amendment 100 to the Arkansas Constitution, which in 2020 authorized full casino gaming at four specific sites. He argued that the deals with DraftKings and FanDuel turn Saracen’s rivals into passive revenue recipients with core operations controlled by out-of-state entities.
“Regulators license operators, not passive recipients of revenue,” Saffa said. “And operational control must be real, verifiable and enforceable, not merely contractual.”
Saracen is owned by the Quapaw Nation of Oklahoma.
Rules, not Ramifications
Deputy Attorney General Doralee Chandler took a more narrow procedural view.
She told the commission that the only question before it was whether the applications meet the requirements set out in the amendment and the commission’s rules, though she was careful to note she hadn’t reviewed the actual applications.
Commission Chair Alex Lieblong said he viewed the applications as simply an extension of something already approved, comparing it to casinos using slot machines from a licensed vendor.
Like Chandler, he set aside broader implications raised by Saffa.
“Early on, we made the deal … you’ve got to keep 51% with the home team. Period,” Lieblong said. “As far as I know, that’s the only rule that we made. If we find out there’s too much abuse going on with write-offs and the free gaming, that would have to be done by the legislature, I’m sure, and we can delve into that further.”