FanDuel (FLUT) and DraftKings (DKNG) have formally applied to enter the Arkansas online sports betting market as third-party mobile operators. The applications will be reviewed and decided on by the Arkansas Racing Commission, which is the state agency that regulates casino gaming and sports betting and has explicit authority to approve or deny third-party mobile sportsbook partners for Arkansas casinos. The online sports betting companies will be required to partner with one of the state’s three commercial casinos as part of their applications.
While Arkansas online sports betting itself has been live since 2022 via locally branded platforms such as Betly, BetSaracen, and Oaklawn Sports, national online sports betting companies have been hesitant to enter the state because of the 51% revenue-share requirement that is still in place. Arkansas mandates that any third-party mobile sportsbook deal must give at least 51% of net sports betting revenue to the in-state casino partner.
However, with no new states expected to legalize online sports betting this year, the incremental revenue from an Arkansas launch looks more appealing to FanDuel (FLUT) and DraftKings (DKNG). Looking at the overall landscape, Citizens Equity Research analyst Jordan Bender noted things are trending in the right direction, but the time-consuming process for legislative action means the firm has a bearish view on any developments with new state legalization.