Mobile Sports Betting In Arkansas Could Soon Be A Reality

Editor Update: Arkansas online sports betting is legal, with brands like Betly and BetSaracen offering mobile apps to bettors in the state since 2022. The post below is now outdated but remains published for historical archive purposes.

After two-and-a-half years of retail betting, Arkansas appears ready to add mobile to its sports betting menu. After a subcommittee approved the proposed rules on Thursday, the Razorback State could have its mobile betting industry up and running in time for March Madness.

There is still another step in the process before Arkansas officially adds its name to the list of mobile sports betting states. That step is for the full Joint Budget Committee to approve the rules. The Committee is slated to meet on Tuesday.

Per local reporting:

“According to Scott Hardin, spokesperson for the state Department of Finance and Administration, if the AR Racing Commission rule changes are approved they would go into effect 10 days later which would allow for legal mobile sports betting by March 4, 2022.”

The 51% Rule

The critical component of the rules is a state-imposed revenue-sharing structure that requires mobile operators to partner with one of the state’s three casinos, with the caveat that the casino receives 51% of revenue. There was some discussion (which delayed the subcommittee vote) if the rule violated the Constitution, but the subcommittee signed off on the policy in the end. Not surprisingly, this policy didn’t go over well with mobile operators and suppliers, which also speaks to what deals might look like in other states.

“What we’re asking for is to be able to go negotiate our own contract with those casinos to be a subcontractor and a third party vendor, without the state putting their finger on the scale dictating a profit margin,” said John Burris, of Capitol Advisors Group, on behalf of national operators like FanDuel and DraftKings. “You can’t write a rule that says out of state not allowed, in-state allowed. They’re written in a way that’s facially valid but has a discriminatory purpose.”

If the leading online operators decide Arkansas is inhospitable, it could open the door for smaller operators and B2B suppliers.

Sports Betting in Arkansas

The current sports betting landscape is underwhelming, with retail betting is available at the state’s three casinos (and a planned fourth casino, Legends Resort Casino):

• Southland Casino in West Memphis
• Oaklawn Racing Casino Resort in Hot Springs
• Saracen Casino in Pine Bluff

Arkansas retail sportsbooks have taken just $112 million in bets and generated $14 million in revenue in two-and-a-half years. The state has received less than $2 million in tax revenue from sports betting.

Mobile betting will supercharge those numbers. With 3 million residents, Arkansas will never be a world-beater, but the state can generate $100 million in bets monthly, like the similarly sized Iowa.