Will Arkansas Approve DraftKings and FanDuel Online Sportsbook Applications?
Posted on: February 24, 2026, 11:35h.
Last updated on: February 24, 2026, 11:35h.
- DraftKings and FanDuel have applied for Arkansas sports betting access
- The sportsbook leaders are seeking online sportsbook concessions
- Arkansas mandates that 51% of an online sportsbook’s revenue remain with the tethered casino
Sportsbook giants DraftKings and FanDuel are finally ready to bet on Arkansas, roughly four years after mobile sports gambling went live.
Arkansas sports betting, both in-person and online, was authorized through Issue 4. The 2018 statewide constitutional referendum approved as many as four casinos, though it appears only three will come to fruition.
The ballot question granted new from-the-ground-up casinos in Jefferson and Pope counties. The Southland and Oaklawn racinos were given the right to become full-fledged casinos with slots, live dealer table games, and sportsbooks.
A mandated condition of the subsequent gaming regulations was that, for online sports betting, a majority of the gross revenue remains with the partnered casino, and not the third-party operating party, such as FanDuel or DraftKings. The 51% rule, which has been lambasted by sports betting interests, was tailored to ensure that Arkansas’ embrace of online sports betting primarily benefits entities inside the Razorback State.
Casinos that run their own online sportsbooks retain 100% of the proceeds, minus taxes. Southland Casino Hotel currently runs Betly, Saracen Casino Resort has BetSaracen, and Oaklawn Racing Casino Resort operates Oaklawn Sports.
Why Now?
DraftKings and FanDuel, along with their lobbying arm, the Sports Betting Alliance, have long argued against the 51% condition. The sportsbooks claim that mandating a majority share of the sports gambling revenue they generate be allocated to their tethered casino partners renders the market unattractive.
So, why are FanDuel and DraftKings ready to bet on Arkansas now?
The American Gaming Association reports that Arkansas sports betting revenue soared almost 30% between 2023 and 2024, with oddsmakers keeping $48.2 million of the bets. The bulk of the sports revenue, around 90%, was facilitated online. Sports gambling experienced further significant growth in 2025. Oddsmakers kept about $59.7 million of the handle, a more than 23% year-over-year improvement.
Those numbers, of course, are before the state’s 13-20% tax on each casino’s gross gaming revenue and the federal excise tax of 0.25% on every sports bet made.
Growth Potential
DraftKings and FanDuel would presumably grow the Arkansas online sports betting market due to their strong name recognition and incessant advertising and promotional capabilities. The platforms think so, otherwise they wouldn’t have submitted online sportsbook applications.
This would allow the sportsbooks to utilize the technology of DraftKings and FanDuel. You could see the apps themselves change. You could see a lot of marketing around it, and I think it would definitely change the face of how this is marketed across the state,” Scott Hardin, a spokesperson for the Arkansas Racing & Gaming Commission, told 5NEWS.
The state racing and gaming regulatory commission is expected to consider the online sportsbook license applications during its meeting this Thursday, Feb. 26, in Little Rock.
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