DraftKings, FanDuel Apply To Operate In Arkansas

Two national online bookmakers, DraftKings and FanDuel, have applied to operate mobile sports betting apps in Arkansas.

The applications could be heard as early as next week at an Arkansas Racing Commission meeting, said Scott Hardin, Arkansas Racing Commission spokesman.

The commission oversees all gaming matters in Arkansas, including casino gambling, sports betting and horse racing. Arkansas is home to three commercial casinos. They are Southland Casino Hotel in West Memphis, Oaklawn Racing Casino Resort in Hot Springs and Saracen Casino Resort in Pine Bluff.

On Wednesday, Hardin told Gambling.com the commission agenda is not finalized, but the issue could come up next week. 

“Whether commissioners consider these applications next week and act (vote) is at their discretion,” he said.

If approved, DraftKings and FanDuel could begin operation in the state immediately, Hardin said. Upon approval, DraftKings would partner with Southland, and FanDuel would partner with Oaklawn. The approval would be for mobile sports betting only, not for prediction market offerings, Hardin said. DraftKings and FanDuel offer prediction market apps in some states.

Currently, each of Arkansas’ three casinos operate their own branded sports betting apps statewide. However, none of the outside major companies, such as DraftKings and FanDuel, operate in Arkansas. Each Arkansas casino is allowed to operate two apps--their own and a second one in partnership with a different company, such as DraftKing and FanDuel.

To operate in Arkansas, these companies have to partner with one of the three licensed casinos in the state. Several years ago, the state approved a rule requiring 51% of sports betting revenue from companies such as these to revert to the local casino.

“If they are ultimately approved, both companies will be qualified to do business with any of the state’s casinos,” Hardin said. “If an Arkansas casino does do business with one of the companies, the 51% rule will apply. This rule requires 51% of the revenue from the sportsbook to remain with the Arkansas casino. The Racing Commission has a team of regulators that will ensure compliance with this rule.”