Battle Looming Over DraftKings, FanDuel Effort To Operate In Arkansas

A battle could be brewing among Arkansas casinos over an effort by DraftKings and FanDuel to operate sports-betting apps in the state.

The two national online bookmakers are seeking to partner with Arkansas casinos to offer mobile sports betting statewide. DraftKings is hoping to partner with Southland Casino Hotel in West Memphis, while FanDuel wants to partner with Oaklawn Racing Casino Resort in Hot Springs.

In an apparent swipe at DraftKings and FanDuel, Carlton Saffa, chief market officer at Saracen Casino Resort in Pine Bluff, posted a tweet Wednesday calling a portion of their businesses into question. Saracen, Southland, and Oaklawn are the only legal casinos in Arkansas.

On X, Saffa tweeted that DraftKings and FanDuel are “heavily engaged in the very illegal practice” of prediction markets in the U.S.

Saffa cited an opinion issued last year by Arkansas Attorney General Tim Griffin, stating that prediction markets require state licensing. At present, DraftKings and FanDuel do not operate prediction market platforms in Arkansas.

Currently, a national debate is underway over prediction markets, which allow people to bet on a range of events, including political campaigns and sports. In addition to DraftKings and FanDuel, other prediction market operators include Kalshi and Polymarket.

Mobile Sports Betting Legal 

Since 2022, the three Arkansas casinos have operated their own branded mobile sports betting platforms statewide. The three casinos are also allowed to partner with a national operator on a second app, as Southland and Oaklawn hope to do with DraftKings and FanDuel. 

Although DraftKings operates a Daily Fantasy Sports app in Arkansas, the current effort is the first time outside companies have attempted to enter the Arkansas mobile sports-betting market since online legalization occurred four years ago. 

DraftKings and FanDuel already operate online sports betting platforms in three states that border Arkansas—Missouri, Tennessee, and Louisiana. Tennessee is an online-only state.

The current applications by DraftKing and FanDuel to compete in Arkansas could be heard as early as the seven-member Racing Commission’s next meeting on Feb. 26 at 11 a.m. CT. Their applications are for sports betting only, not for any prediction market components.

If approved, DraftKings and FanDuel could begin offering online sports betting right away without legislative approval, Scott Hardin, commission spokesman, told Gambling.com.

51% Profit-Sharing Rule Still In Effect

In Arkansas, Oaklawn has had a long-standing involvement with the Racing Commission. 

Oaklawn is home to a historic horse track, which hosts the Arkansas Derby, an important prelude to the annual Triple Crown races and a boost to tourism in the state. To some, this longtime relationship, which began before casinos were legal in Arkansas, has been viewed as an advantage for Oaklawn.

The commission regulates all gambling in Arkansas. This includes casino games, sports betting, and horse racing. For decades, dog racing was held at Southland, but it has been discontinued at the property.

In late 2021 and early 2022, Saffa was successful in winning approval from the Racing Commission and the state Legislature for a rule requiring national bookmakers like DraftKings and FanDuel to partner with a local casino if seeking to operate in Arkansas. During this process, he was critical of online bookmakers outside the state, contending that the bulk of their profits would leave the state.

The state mobile sports betting rule also requires any national online bookmaker to surrender 51% of sports betting profits to its Arkansas casino partner. 

The 51% rule, which exists nowhere else in the country, still is in place and would be applied to DraftKings and FanDuel in their partnership with Southland and Oaklawn, if they win approval, Hardin said.

Last year, Saffa was unable to win support from the state’s other two casinos in his unsuccessful bid to have iGaming approved during the legislative session. To date, iGaming, which allows users to play casino games such as craps and poker on cellphone apps and computers for real money, is illegal in Arkansas.