DraftKings and FanDuel launch online sports betting in Arkansas through casino partnerships

DraftKings expanded into its 30th state and FanDuel into its 26th with their Arkansas launches through casino partnerships.

The two operators went live on Friday through agreements with Southland Casino and Oaklawn Casino, following approval from the Arkansas Racing Commission on February 26 to obtain vendor licenses.

DraftKings partnered with Southland in West Memphis, while FanDuel aligned with Oaklawn in Hot Springs. Both companies already operate prediction market platforms in Arkansas, though these do not include sports-related contracts.

“Arkansas is home to passionate sports fans and represents an important growth market,” said FanDuel Sportsbook Managing Director Karol Corcoran.

Structure of operations defined by state rules

Arkansas permits online sports betting through a framework requiring casinos to retain 51% of sportsbook revenue when working with third-party providers. Under this structure, DraftKings and FanDuel act as vendors, supplying platform technology and odds services, while casino partners oversee operations.

At Oaklawn, the new platform integrates FanDuel’s system into its sportsbook product. Zack Gillham, vice president of racing and wagering, described the operational change: “In our old app, we had many vendors that we used to help have that app run. We had two main vendors. Now we have one main vendor. So, that's the biggest change, is now when we want to make changes, we don't have to have as many people involved.”

Southland replaced its previous Betly-powered sportsbook, which ceased operations on Friday, with a DraftKings-powered platform.

“I'm partial because I do work at DraftKings. But I've been around a lot of these sports apps, and this one is probably the easiest to navigate to find what you're looking for,” said Johnny Avello, DraftKings’ director of race and sports operations.

Existing operators retain established positions

Before the launch of the two national operators, Saracen Casino led the state’s online sports betting market through its BetSaracen platform. Saracen reported $329 million in handle, with 98% coming from online betting.

Oaklawn ranked second with $202 million in online handle, while Southland recorded $93 million.

Saracen had called for restrictions on out-of-state operators prior to the approval process. Following the rollout, Saracen Chief Marketing Officer Carlton Saffa issued a statement addressing tax contributions.

“We are proud of what we, as Arkansans, have built. Besides being the state’s biggest sportsbook, BetSaracen was created by Arkansans, for Arkansans. Our business delivers real benefits to the public whether you bet with us or not,” said Saffa in a statement.

"To date, BetSaracen has paid more than $12 million in gaming taxes from our sports betting operations alone. In contrast, the national operators have proven their model provides little to no tax benefit to the states in which they operate. It is likely that Arkansas will see less — not more — tax revenue with these out-of-state companies in the market."

Launch coincides with high betting activity

The rollout takes place during the NCAA March Madness tournament, one of the busiest betting periods in the United States. The American Gaming Association estimates that $3.3 billion will be wagered legally on this year’s games.

Promotional campaigns tied to the Arkansas Razorbacks accompanied the launch. DraftKings and Southland introduced an offer tied to team performance. Avello described the promotion: “You bet $1 on Arkansas to score one point, and you win $50. Now you have $50 to play on other things that are coming up.”

The Razorbacks advanced to the Sweet 16 and are scheduled to face the Arizona Wildcats on March 27.

The Arkansas Racing Commission indicated it will monitor market activity following the introduction of the new platforms. State officials expect changes in revenue generation following the addition of DraftKings and FanDuel.

Arkansas Department of Finance and Administration spokesperson Scott Hardin previously described the entry of the two operators as a “game-changer,” noting the potential for tax revenue to move beyond the millions recorded last year.