DraftKings and FanDuel receive approval to launch in Arkansas
Table of contents
- The Arkansas Racing Commission unanimously approved vendor licenses for DraftKings and FanDuel on 26 February 2026.
- DraftKings will partner with Southland Casino Hotel and FanDuel with Oaklawn Racing Casino Resort, operating as platform vendors rather than third-party sportsbooks.
- Oaklawn’s general manager projected a fivefold increase in sports betting revenue, with both launches expected before March Madness.
The Arkansas Racing Commission (ARC) has unanimously approved vendor licenses for DraftKings and FanDuel to enter the state’s mobile sports betting market.
The 7-0 decision on 26 February signals the end of a local-only era that has defined Arkansas mobile wagering since its launch in 2022.
Vendor model navigates the 51% rule
Under the approved structure, DraftKings will partner with Southland Casino Hotel in West Memphis. FanDuel will serve as the technology vendor for Oaklawn Racing Casino Resort in Hot Springs. Both national brands will operate as platform providers rather than third-party sportsbooks.
This structure avoids triggering the state’s strict 51% revenue-sharing rule, which requires casinos to retain a majority of sports betting revenue from third-party operators.
The 51% requirement had kept national operators out of Arkansas for nearly four years. Both DraftKings and FanDuel had previously criticised the rule as commercially unworkable.
The vendor model, where the national brands provide technology, betting lines and platform support, resolves that impasse. As vendors, the companies supply infrastructure to the casinos rather than operating as independent sportsbook licensees.
Arkansas will be the 30th US state where DraftKings operates regulated sports betting, in addition to Washington DC, Ontario and Puerto Rico. For FanDuel, Arkansas will be the 25th US jurisdiction.
“We’re excited to team up with Southland Casino Hotel to bring DraftKings’ top-rated mobile sportsbook to Arkansas and introduce fans to our best-in-class sports betting offering,” said Gregory Karamitis, DraftKings Executive VP and General Manager of Sports.
A FanDuel spokesperson said the company is “grateful to the Arkansas Racing Commission for approving us as a vendor.”
Fivefold revenue growth projected
Wayne Smith, general manager of Oaklawn Racing Casino Resort, told the commission that its partnership with FanDuel is expected to deliver a fivefold increase in online sports betting revenue. Arkansas casinos generated total sports betting handle of $655 million in 2025, of which approximately 90% was placed online.
Oaklawn’s existing sportsbook app will be discontinued and replaced by a new product branded as Oaklawn Sports, powered by FanDuel. Southland’s Betly app will transition to a DraftKings-powered platform. Both platforms could launch within days or weeks, with both operators targeting availability before March Madness begins.
Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration, confirmed that state auditors will be present in the casinos to ensure compliance with the 51% revenue-sharing requirement. Hardin said the department expects the new platforms to generate increased tax revenue for the state.
By comparison, Iowa, a state with a similar population to Arkansas, generated approximately $2.9 billion in handle during 2025, more than four times Arkansas’s total. Missouri reported $543 million in wagers in its first month alone following its December 2025 launch.
Saracen Casino opposes the move
The approval came despite opposition from the state’s third sportsbook operator.
Carlton Saffa, Chief Marketing Officer of Saracen Casino Resort, argued against the entry of both national brands. Saracen operates BetSaracen and was the state’s market leader in 2025 with total sports handle of $329 million, including $322 million from online betting.
“We have a system that is working for Arkansas, one that other states want to replicate. If you allow this, you will break that system,” Saffa told the commission.
Saffa warned that DraftKings and FanDuel would launch aggressive promotional campaigns that could distort the market. He questioned how the operators could comply with the 51% rule after previously calling it impossible.
He pointed to Missouri’s December 2025 launch, where the two national brands reportedly distributed more than $100 million in promotional free play, which limited taxable revenue in the opening month. Arkansas does not currently cap free-play deductions, though that issue could be addressed legislatively.
Saffa also highlighted that both companies have criticised similar revenue-sharing frameworks in other states, including Wisconsin, where a proposed requirement for operators to provide tribes with 60% of online sports betting revenues has drawn objections from both DraftKings and FanDuel.
“Are they showing their work on how they can comply with the 51% rule? They told you this was impossible just a few years ago,” Saffa said.
Commission Chairman Alex Lieblong confirmed that the contracts meet the statutory requirement for casinos to retain majority revenue and operational authority.
A representative from the Arkansas attorney general’s office advised that applications satisfying all regulatory criteria should be approved.
Saracen has not partnered with a national operator and has no immediate plans to move away from its BetSaracen product. Saffa said the company is proud of the platform and reputation it has built with Arkansas bettors.
Market context and what comes next
Arkansas legalised retail sports betting in 2018 through Issue 4, a statewide constitutional referendum. Mobile sports betting launched in 2022.
The state allows up to six mobile operators, two for each of its three retail casinos. Until now, the market had been limited to proprietary apps: Oaklawn Sports, Southland’s Betly and Saracen’s BetSaracen.
The entry of DraftKings and FanDuel is expected to significantly expand the state’s betting volume. Both operators hold roughly 33% national market share each and bring superior app interfaces, deeper betting markets and more aggressive odds pricing, according to industry analysts.
Keep reading
Do you have a story worth sharing?
Send it over to our editors!
