FanDuel, DraftKings push for Arkansas sports betting entry
Arkansas could soon open its online sports betting market to two of the largest operators in the United States after both companies submitted formal applications to regulators.
According to a report by local Fox News affiliate KNWA, a pair of national gambling companies has submitted applications that would allow them to partner with casino sports books in Arkansas.
Scott Hardin, a spokesperson with the Arkansas Department of Finance and Administration, told local Fox News affiliate KNWA that if approved, FanDuel and DraftKings could partner with any of the three existing casino sports books in the Natural State.
Regulatory approval required
Hardin said that if approved, the state’s casinos could choose to partner with these third parties on the sports betting apps they offer, potentially co-branding their sports betting apps.
“The partnership between an Arkansas casino and a third party is allowed if the Arkansas Racing Commission approves the third party and a casino chooses to do business with that company,” according to Hardin. However, at least 51 percent of the revenue has to go to the Arkansas casino.
Hardin noted that it will be up to the Arkansas Racing Commission as to when they decide to consider the applications. A meeting is being considered for later in the month, but agenda items have not been decided.
He also told KNWA/FOX24 that if approved, the companies could partner with any of the three licensed casino sportsbooks in Arkansas. He said a meeting has not yet been scheduled, but it could occur as soon as next week. If approved, the operators could begin operating in the state immediately.
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The three licensed casinos
Arkansas has three licensed casinos that are authorised to offer both retail and statewide mobile sports betting. They are Oaklawn Racing Casino Resort, Saracen Casino Resort and Southland Casino Hotel.
Under the current system, each property can operate a single mobile sportsbook platform linked directly to its casino licence. This structure has kept the market tightly controlled and has limited outside operators unless they reach a partnership agreement with one of the three casinos.
According to reports, DraftKings would partner with Southland, while FanDuel would partner with Oaklawn. Any such arrangement would still require regulatory approval.
Current state of the market
Arkansas legalised retail sports betting in 2018 and launched mobile sports betting in 2022. The state allows up to six mobile operators, two connected to each of the three retail casinos.
At present, there are three platforms operating in the state. BetSaracen is linked to Saracen Casino Resort. Betly Sportsbook operates with Southland Casino. Oaklawn runs its own in house platform, Oaklawn Sports.
While DraftKings Daily Fantasy Sports is available in Arkansas, its online sports betting product is not currently offered in the state. FanDuel operates in 26 states and Puerto Rico, while DraftKings operates in 27 states.
Revenue comparisons
Despite having mobile betting for several years, Arkansas has generated lower wagering volumes than some comparable states.
In 2025, Arkansas residents wagered roughly $655 million. By comparison, Iowa, which has a similar population, generated approximately $2.9 billion in handle during the same period. Missouri, which has roughly double Arkansas’ population, reported $543 million in wagers in its first month after launching in December 2025.
The limited number of operators and the absence of major national brands have been seen as factors behind Arkansas generating significantly less revenue than comparable states.
The 51% revenue rule
A key reason for the market structure is Arkansas’ mandatory 51 percent revenue share requirement. The state requires third-party operators such as DraftKings and FanDuel to allocate 51 percent of sports betting revenue to their in-state casino partner.
In most states, revenue splits are negotiated privately and often allow operators to retain a larger share. Arkansas’ structure reduces potential margins for national brands. With a population of around 3.1 million, the commercial case may previously not have justified entry for major operators.
The new applications suggest that the commercial terms may now be considered workable or that expansion into smaller markets is becoming more important as growth slows in larger states.
Entry through state regulatory process
While the two operators provide prediction market platforms elsewhere, neither business has contracts for sporting events in Arkansas. In Arkansas, DraftKings Predict only offers financial markets. FanDuel’s platform in the state includes finance, economics and commodities, but it does not provide sports contracts. In other states where they do not offer sports betting, both operators provide sports event contracts.
Their decision to apply through the state’s regulatory framework rather than rely on prediction market platforms shows a clear intention to enter the regulated sportsbook market in Arkansas.
What happens next
Regulators will review the submitted applications and determine whether a partnership can move forward. It is unlikely that both brands would operate under the same casino licence, meaning one operator could be selected if approval is granted.
For bettors, approval could mean access to nationally recognised apps and a broader betting experience. For existing operators, it would bring stronger competition into a market that has so far remained relatively stable.
The next decision by the Arkansas Racing Commission will determine whether the state continues with its tightly controlled structure or moves into a more competitive phase with national sportsbook brands operating in the market.
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