DraftKings and FanDuel have applied to launch mobile sports betting in Arkansas, potentially opening the market to national brands previously excluded by strict revenue-sharing rules.
Key Takeaways
* DraftKings and FanDuel have filed applications to operate mobile sports betting in Arkansas, signaling a potential shift in the state’s iGaming landscape.
* The state’s 51% revenue share rule, which requires third-party operators to cede a majority of their earnings to casino partners, has historically deterred national brands.
* Arkansas’s mobile sports betting market has significantly underperformed compared to states with similar populations, a situation that could change with the entry of major operators.
National Operators Seek Arkansas Entry
Arkansas’s mobile sports betting market could soon see the introduction of DraftKings and FanDuel, as both companies have submitted applications to operate within the state. If approved, these operators could launch their services without delay.
Scott Hardin of the Arkansas Department of Finance and Administration confirmed that DraftKings and FanDuel, if permitted, would need to partner with one of the state’s three licensed casino sportsbooks. While no specific meeting is scheduled, discussions could occur as early as next week.
The three licensed casinos in Arkansas are Oaklawn in Hot Springs, Saracen in Pine Bluff, and Southland in West Memphis. Reports suggest DraftKings may partner with Southland, while FanDuel is expected to align with Oaklawn.
Arkansas’s Current Betting Landscape
Arkansas authorized retail sports betting in 2018, with mobile operations commencing in 2022. The state allows for up to six mobile operators, with two allocated to each of the three retail casinos. Currently, three platforms are active: BetSaracen at Saracen Casino Resort, Betly Sportsbook at Southland Casino, and Oaklawn Sports at Oaklawn Casino.
This limited selection and the absence of nationwide operators have contributed to Arkansas’s sports betting revenue lagging behind comparable states. For instance, players wagered approximately $655 million in Arkansas in 2025. In contrast, Iowa, with a similar population, recorded nearly $2.9 billion in bets during the same period, more than quadruple Arkansas’s total. Even Missouri, with roughly twice Arkansas’s population, reported $543 million in bets in its inaugural month after launching in December 2025.
The 51% Revenue Rule: A Historical Barrier
The primary reason for Arkansas’s slower growth in mobile sports betting, despite legalization years ago, has been the state’s unique 51% revenue share rule. This regulation mandates that third-party operators, such as DraftKings and FanDuel, allocate 51% of their sports betting revenue to their in-state casino partners. In most other states, revenue shares are privately negotiated, allowing operators to retain a larger portion of their earnings. This structure significantly reduces operator margins in Arkansas.
Strict regulations, combined with a population of approximately 3.1 million, have historically made it challenging for major operators to justify market entry. However, these new filings suggest a potential shift. It indicates that either commercial terms have become more favorable, or the desire for market growth and competition is now outweighing previous concerns, especially as the pace of new state legalizations slows.
Transition from Prediction Markets to Regulated Sportsbooks
This move by DraftKings and FanDuel is notable within the broader betting market. Both companies operate prediction market platforms in most states, but neither currently offers sports event contracts in Arkansas. DraftKings Predict in Arkansas focuses solely on financial markets, while FanDuel’s platform includes finance, economics, and commodities, but no sports contracts. Ironically, both firms provide sports event contracts only in states where they do not have regulated sports betting operations.
The decision to pursue entry into Arkansas through the state’s regulatory process for sportsbooks, rather than leveraging their existing prediction market platforms, signals a clear progression towards the regulated sportsbook market. This development could significantly alter the competitive landscape and revenue potential for mobile wagering in Arkansas.
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