DraftKings, FanDuel Want the Early Sports Betting Worm in Arkansas

FanDuel and DraftKings are looking to secure licenses that would allow them to operate sportsbooks in Arkansas, with the gambling behemoth seeking to team up with local casinos.

Commenting on these developments for KNWA/FOX24, Arkansas Department of Finance and Administration Scott Hardin confirmed that the companies had indeed submitted bids and are now awaiting final approval.

DraftKings and FanDuel Want an Early In in Arkansas 

If they are approved, they will be able to team up with the local casinos and bring their sports betting product locally. Presently, Arkansas supports three locations that are eligible for this partnership, namely the Oaklawn Casino in Hot Springs, the Saracen Casino in Pine Bluff, and the Southland Casino in West Memphis.

There are a number of criteria that need to be met besides the tethering. The local law is protective and mandates that at least 51% of the revenue has to go to the partner Arkansas casino in the case of partnerships that establish mobile betting. 

Currently, the partner casinos already offer sports betting of their own, with BetSaracen teamed up with the Saracen Casino Resort, Betly Sportsbook with Southland Casino, and Oaklawn Sports with Oakland casino. 

However, the model has been criticized for sluggishness, which the Arkansas Racing Commission would now have to consider whether the private sector can liven up.

Nothing illustrates this better than the fact that Arkansas is handling roughly $655 million in 2025, which puts it behind other states of similar size and population, such as Iowa, which almost broke the $3-billion threshold in total stakes placed through its local sportsbooks.

Not Much Room to Negotiate Better Rates

DraftKings and FanDuel have long debated entry, with the 51% revenue-split entry probably putting the brakes on earlier moves. 

Essentially, the companies would normally be allowed to negotiate how they split revenue with a local partner they are tied to, but in the case of Arkansas, these numbers are baked into the regulatory framework, leaving little wiggle room for negotiation.

Why now, then? It really depends. Arkansas has a population of only 3 million, but the state could be a testing ground for other products, such as prediction markets, which could, in theory, also launch locally, drawing a far larger number of consumers, as sports fans and prediction market users tend not always to be the same people.