DraftKings and FanDuel File for Entry into Arkansas Sports Betting Market

DraftKings and FanDuel have filed applications to enter the Arkansas sports betting market through partnerships with the state's three existing casinos. Scott Hardin, a spokesperson for the Arkansas Department of Finance and Administration, confirmed that the operators could collaborate with any of the current permit holders if the Arkansas Racing Commission grants approval.

The move follows years of absence by national brands in the state due to a specific regulatory requirement that mandates a high revenue split for local partners. Under current Arkansas sports betting rules, any partnership requires the in-state casino to retain at least 51% of the generated sports betting revenue. 

This structure differs from many other jurisdictions, where third-party operators typically negotiate higher profit-sharing arrangements with themselves.

The existing facilities include Oaklawn Casino in Hot Springs, Saracen Casino in Pine Bluff, and Southland Casino in West Memphis. Hardin stated that if the commission approves the applications, these casinos could choose to co-brand their mobile applications with the third-party providers.

Currently, each of the three casinos operates its own platform: Oaklawn Sports, BetSaracen, and Betly Sportsbook. The state allows up to 6 mobile operators in total, with each retail casino receiving 2 skins.

While DraftKings offers daily fantasy sports in the state, its sportsbook application remains unavailable to local residents. The Arkansas Racing Commission has not yet set a formal date to review the applications, though a meeting is being considered for later this month.

If granted, the companies could begin operations immediately, provided they have finalized agreements with their respective casino partners.

DraftKings executive criticizes proposals to ban prop wagering

The expansion efforts in Arkansas coincide with the intensifying debate over the future of specific wagering categories across the US. DraftKings CEO Jason Robins recently characterized active proposals to prohibit proposition bets as a mistake that could lead to negative market consequences.

He said that banning the wagers, in which consumers bet on statistics of individual player performances rather than the outcomes of games, would probably lead consumers to seek out unregulated offshore markets. The comments came in response to a string of sports integrity investigations in professional and collegiate sports that have garnered national attention.

NCAA President Charlie Baker has advocated for a nationwide prohibition on college player props to protect student-athletes from harassment and potential manipulation.

The Big Ten Conference Student-Athlete Issues Commission recently sent a letter to Baker supporting such a ban, citing concerns over the mental health of athletes who face social media backlash from bettors. In the professional ranks, Ohio regulators implemented new limits following an investigation involving Cleveland Guardians pitchers Luis Ortiz and Emmanuel Clase.

Robins argued that these incidents are anomalies and that the discovery of violations proves that current monitoring systems are functioning as intended. He noted that the company has already adjusted its offerings, such as removing bets on turnovers and restricting pitch-by-pitch markets in baseball, to mitigate risks without necessitating a total ban.