FanDuel, DraftKings Receive Approval For Arkansas Online Sports Betting

• Arkansas Racing & Gaming Commission approved FanDuel, DraftKings for sports betting vendor licenses
• FanDuel will partner with Oaklawn Racing Casino Resort and DraftKings will partner with Southland Casino
• Both companies will soon launch online sports betting services in the state

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FanDuel and DraftKings will soon launch Arkansas online sports betting services after receiving unanimous approval from the Arkansas Racing & Gaming Commission.

The Arkansas Racing & Gaming Commission approved both FanDuel and DraftKings applications for sports betting vendor licenses, allowing FanDuel to partner with Oaklawn Racing Casino Resort and DraftKings with Southland Casino.

Both companies will act as vendors for the casinos and offer online sports betting on their behalf.

Partnerships Mean More Sports Betting

Southland Casino offered online sports betting through its Betly Sportsbook platform, while Oaklawn Racing Casino Resorts offered online sports betting through its Oaklawn Sports platform. With the vendor approval, Oaklawn users will use a FanDuel Sportsbook app “powered by Oaklawn Sports” and Southland’s Betly app will become a Southland-logo app “powered by DraftKings.”

Wayne Smith, general manager for Oaklawn Racing Casino Resorts, reported during the hearing that its partnership with FanDuel is expected to bring in an increase of five-times the amount of online sports betting revenue the casino currently brings in now through its Oaklawn Sports platform.

The increased revenues will also be used to help “horse racing purses,” Smith said. Oaklawn houses a historic racetrack in the state.

DraftKings, in a press release, noted the company will launch in Arkansas “soon,” pending final regulatory approvals. Arkansas will be the 30th state, in addition to Washington, D.C., Ontario, Canada, and Puerto Rico, where DraftKings operates regulated sports betting.

“We’re excited to team up with Southland Casino Hotel to bring DraftKings’ top-rated mobile sportsbook to Arkansas and introduce fans to our best-in-class sports betting offering,” said Gregory Karamitis, DraftKings Executive Vice President and General Manager of Sports. “As March Madness approaches and several major sports are underway, we look forward to serving Arkansas customers with innovative features, including our No. 1 live betting experience and a continued commitment to responsible gaming.”

A FanDuel spokesperson told Sports Betting Dime the company is “grateful to the Arkansas Racing Commission for approving us as a vendor” and is looking forward to the next steps in the process.

Arkansas online sports betting has been legal since March 2022, but the state has a unique revenue sharing requirement that has, until now, turned off most major sports betting companies from entering the market.

The Natural State features a 51% sports betting revenue clause, which requires state casinos to keep at least 51% of sports betting revenue if partnered with an online sportsbook company. Online sportsbooks typically keep between 85% to 95% of revenue in partnerships with casinos in other states.

Why Now For FanDuel and DraftKings?

Arkansas’ third casino, Saracen Casino Resort in Pine Bluff, has not partnered with a national operator, instead using its in-house BetSaracen platform. Saracen Casino Resort Chief Marketing Officer Carlton Saffa earlier this week told Sports Betting Dime that Saracen Casino has no immediate plans to move away from its BetSaracen product.

“Despite being a relatively new company, Saracen continues to take the majority of all sports wagers in Arkansas. We’re proud of the product and reputation we’ve built with Arkansans. We see no deviation from being BetSaracen in the future,” he said.

Saffa spoke out in the hearing against the entry of both FanDuel and DraftKings, questioning the timing of their decision and if they will prove to be beneficial to the state’s sports betting market.

When Arkansas considered sports betting legalization five years ago, Saffa said the companies spoke out against the 51% sports betting revenue clause, declaring it to be impossible to operate in Arkansas with the requirement to give up that much revenue to a casino partner.

Currently in Wisconsin, Saffa said both FanDuel and DraftKings have expressed displeasure at a clause that would require companies provide tribes with 60% of revenues derived from online sports betting.

So why, Saffa asked, is this no longer an issue for these companies?

“Are they showing their work how they can comport with the 51% rule? They told you this was impossible just a few years ago. They’re saying in Wisconsin today it’s impossible. I ask you to hold them to the same standard my son is held to in his math class,” Saffa said.

As Arkansas sports betting regulations currently allows casinos and vendors to deduct free play and bonus bets from their taxable sports betting win totals, Saffa questioned if tax revenues will increase along with handle totals. He pointed to Missouri, which only brought in $521,000 in sports betting tax revenues on more than $543 million bet during its first month of operation in December 2025.

Kansas, he said, has also seen less than expected sports betting tax revenues due to a high number of promotional deductions.

“What you can see in Missouri, there is a hell of a lot of money being gambled, but is there more taxable revenue?”

Arkansas Racing & Gaming Commission Chairman Alex Lieblong said if the commission witnesses abuse of deductible promotions and free play bets from the new vendors the group can address it with a rule in the future.

Saffa earlier this week told Sports Betting Dime that Saracen Casino has no immediate plans to move away from its BetSaracen product.

“Despite being a relatively new company, Saracen continues to take the majority of all sports wagers in Arkansas. We’re proud of the product and reputation we’ve built with Arkansans. We see no deviation from being BetSaracen in the future,” he said.