FanDuel and DraftKings Approved for Arkansas Sports Betting Apps

FanDuel and DraftKings will enter the Arkansas market as technology vendors for the state's two casino sportsbooks after unanimous approval from the Arkansas Racing Commission, a move expected to significantly expand Arkansas sports betting activity.

The Commission voted Thursday to allow FanDuel to power Oaklawn Casino's new mobile sportsbook app and to have DraftKings serve as the vendor for Southland Casino in West Memphis. The decision followed testimony from casino representatives and opposition from Saracen Casino, the state's third sportsbook operator.

Arkansas sports betting handled $655 million in 2025, and Oaklawn General Manager Wayne Smith said the figure could grow fivefold under the new arrangement. He added that national backing would accelerate that expansion and strengthen market reach.

Under the agreements, FanDuel will provide betting lines, technology infrastructure, and platform support for Oaklawn's rebranded mobile product, while DraftKings will do the same for Southland. In return, each company will receive a share of sportsbook revenue generated through the apps.

Saracen Chief Market Officer Carlton Saffa urged the Commission to reject the agreements. He argued the state's current structure was functioning effectively and warned that partnering with out-of-state operators could disrupt the system. 

Saffa questioned whether the deals complied with Arkansas' 51% rule, which requires a majority of partnership revenue to remain with the in-state casino. He asked regulators whether operators had demonstrated how they would meet that threshold.

Commission members said they found no violations in the contracts and unanimously approved both partnerships. Arkansas Department of Finance and Administration spokesperson Scott Hardin said implementation could occur within days or weeks. 

Smith confirmed that Oaklawn's current sportsbook app will be discontinued and replaced by a new product, Oaklawn Sports, powered by FanDuel. Hardin added that state auditors will monitor casino operations to ensure compliance with the 51% requirement. 

DraftKings cuts jobs amid slower growth outlook

The Arkansas expansion comes as DraftKings restructures its operations nationally. The Boston-based operator confirmed it eliminated an unspecified number of roles as part of a reorganization aimed at prioritizing key investment areas.

DraftKings employed 5,500 people across 13 countries at the end of 2025, but declined to disclose how many positions were cut or where reductions occurred. The company said the restructuring would affect multiple teams. It is also relocating its headquarters from Back Bay to Boston's financial district next year while maintaining roughly 125,000 square feet of office space.

Earlier this month, DraftKings reported fourth-quarter revenue rose 43% to nearly $2 billion. Adjusted earnings per share more than doubled to 36 cents. However, the company projected revenue growth of about 14% for the coming year, a slower pace than the prior period.

The workforce reductions follow increased competition within the online wagering sector, including pressure from prediction markets operating under different regulatory frameworks. DraftKings did not directly link the job cuts to specific competitive forces but described the move as part of aligning staffing with strategic priorities.