Emergency Arkansas Racing Commission Meeting Scheduled to Discuss Mobile Sports Betting

The Arkansas Racing Commission has scheduled an emergency meeting for next week to discuss changing the wording in a proposed rule that would allow Arkansas online sports betting.

The meeting, “to consider a correction” to the mobile sports betting rule, is set for 11 a.m. on Tuesday in Little Rock.

Commission Last Month Approves Mobile Sports Betting

On Dec. 30, the Racing Commission, which regulates all gaming in Arkansas, voted to legalize mobile sports betting anywhere in the state. The rule change requires approval from the Arkansas Legislative Council, which could vote on the matter at its Jan. 28 meeting.

The issue up for discussion at Tuesday’s Racing Commission meeting centers on the term net gaming “revenue” in the proposed rule change. The new language to be considered Tuesday would change that to net gaming “receipts.”

The change would remove a technical objection to the wording.

Profit-Sharing Plan Unique to Arkansas

Under the proposed mobile sports betting rule, Arkansas casinos would retain 51% of profits in partnerships with brand-name, national online sportsbooks. These bookmakers typically share 5-15%.

The state’s three commercial casinos contend the majority of revenue from mobile sports betting should remain in-state.

The casinos are Saracen Casino Resort in Pine Bluff, Oaklawn Casino Resort in Hot Springs, and Southland Casino Racing in West Memphis. A fourth hotel-casino has been approved in Pope County but has not been built. On-site sports betting is already allowed at ticket windows and kiosks inside Arkansas casinos.

Online Bookmakers Object to 51% Rule

Leading up to the Dec. 30 Racing Commission vote, a coalition of online bookmakers formed an advocacy group, Bet on Arkansas, with a website and Facebook page. The coalition includes BallyBet, BetMGM, DraftKings, FanDuel and Fanatics Sportsbook.

This coalition asserted that profit-sharing arrangements should be negotiated between private businesses, such as themselves and casinos, not by the government.

The agenda for Tuesday’s Racing Commission meeting does not indicate that the 51% provision will come up for discussion.