FanDuel and DraftKings Launch in Arkansas

Sportsbook operators FanDuel and DraftKings have launched mobile operations in Arkansas on Friday after receiving regulatory approval, marking a shift in the state's sports betting market through partnerships with existing casinos.  

The Arkansas Racing Commission approved both operators on 26 February, allowing each to enter through vendor agreements tied to in-state properties. 

FanDuel ended up partnering with Oaklawn Casino to power its mobile sportsbook, while DraftKings aligned with Southland Casino in West Memphis under a similar structure. Both operators function as service providers, receiving a share of generated revenue rather than operating independently within the Arkansas sports betting market.

The agreements followed applications submitted earlier in February, as both companies sought entry through Arkansas's casino-based licensing model. That model requires sportsbooks to operate in conjunction with licensed casinos, rather than as standalone entities. 

The expansion drew scrutiny from Saracen Casino, which opposed the involvement of out-of-state operators. The operator pointed to earlier positions from Oaklawn and Southland that had previously resisted such partnerships. Concerns were also raised about compliance with Arkansas' 51% rule, which requires that a majority of revenue from sportsbook operations be retained by the in-state casino partner. 

State officials addressed those concerns by confirming that the Department of Finance and Administration will monitor compliance through on-site auditors. While the department has not formally taken a stance on the partnerships, officials expect increased tax revenue tied to the expanded market. 

The launches introduce new competition in Arkansas sports betting while reinforcing a regulatory framework centered on casino-led operations and revenue retention within the state. 

NCAA files trademark lawsuit against DraftKings during tournament 

The Arkansas launch coincided with a separate legal development involving DraftKings, as the NCAA filed a federal lawsuit on Friday alleging trademark infringement tied to the ongoing college basketball tournaments.  

The case was filed in the Southern District of Indiana and centers on the sportsbook's use of terms associated with NCAA events. 

The NCAA sought an emergency temporary restraining order to prevent DraftKings from using phrases such as "March Madness," "Final Four," "Sweet Sixteen," and "Elite Eight" on its sportsbook platform. The organization stated that it had previously requested changes, resulting in the removal of some uses, but said DraftKings continued to display the terms across its app. 

The lawsuit argued that the continued use occurred during the men's and women's Division I Basketball Tournaments and conflicted with the NCAA's position on gambling associations. The filing stated that the issue was urgent due to its timing and its relationship to the organization's overall mission. 

DraftKings argued that their use of the terms was not in violation of any law on trademark because they were only being used to identify tournament games. It said such terms were commonly used on the best sports betting sites.