DraftKings has officially entered its 30th state, while FanDuel marks its presence in its 26th state with the recent launch in Arkansas, achieved through partnerships with local casinos.
The two platforms went live on Friday, following the Arkansas Racing Commission's approval on February 26 for vendor licenses, allowing them to operate in the state. DraftKings has teamed up with Southland Casino in West Memphis, while FanDuel has partnered with Oaklawn Casino in Hot Springs. Although both companies have been active in Arkansas through prediction market platforms, these did not include sports betting contracts.
Karol Corcoran, Managing Director of FanDuel Sportsbook, commented, “Arkansas has a vibrant community of sports enthusiasts and is a significant market for growth.”
In Arkansas, online sports betting is regulated under a system that mandates casinos to retain 51% of the sportsbook revenue when collaborating with third-party operators. Within this framework, DraftKings and FanDuel serve as vendors, providing technology and odds services, while the casino partners manage the operations.
At Oaklawn, FanDuel’s technology has been integrated into their sportsbook offerings. Zack Gillham, Vice President of Racing and Wagering, explained the operational shift: “Previously, we utilized multiple vendors for our app. Now, we have streamlined to one main vendor, simplifying our process for implementing changes.”
Southland Casino has transitioned from its former Betly-powered sportsbook, which ceased operations on Friday, to a platform powered by DraftKings.
Johnny Avello, Director of Race and Sports Operations at DraftKings, shared his perspective: “I have experience with various sports betting apps, and I find this one to be the most user-friendly.”
Before the arrival of these national operators, Saracen Casino dominated Arkansas’s online sports betting scene with its BetSaracen platform, reporting a total handle of $329 million, with 98% derived from online bets. Oaklawn followed with $202 million in online handle, while Southland recorded $93 million.
Prior to the approval of the new operators, Saracen Casino advocated for restrictions on out-of-state competitors. Following the launch, Carlton Saffa, Chief Marketing Officer of Saracen, released a statement emphasizing their contributions to the state’s tax revenue.
“We take pride in what we have built as Arkansans. BetSaracen was developed by Arkansans for Arkansans, and it provides tangible benefits to our community,” Saffa stated. “To date, we have contributed over $12 million in gaming taxes from our sports betting operations. In comparison, national operators have shown that their model offers minimal tax benefits to the states they enter. Arkansas may experience a decline in tax revenue with these external companies in the market.”
The launch coincides with the NCAA March Madness tournament, a peak period for sports betting in the U.S., with projections from the American Gaming Association estimating $3.3 billion in legal wagers for this year’s tournament.
To celebrate the launch, promotional campaigns featuring the Arkansas Razorbacks were introduced. DraftKings and Southland offered a unique promotion linked to team performance, where a $1 bet on Arkansas scoring a point would yield a $50 reward for further betting opportunities.
The Razorbacks have advanced to the Sweet 16 and are set to compete against the Arizona Wildcats on March 27.
The Arkansas Racing Commission has indicated it will keep a close eye on market dynamics following the introduction of these new platforms, with state officials anticipating changes in revenue generation as DraftKings and FanDuel establish their presence.
Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration, previously referred to the entry of these two operators as a “game-changer,” highlighting the potential for tax revenue to increase significantly.