DraftKings gets license to provide online sportsbook in Arkansas

DraftKings gets license to provide online sportsbook in Arkansas

DraftKings and FanDuel Seek Entry into Arkansas Online Sports Betting Market

On February 26, 2026, the Arkansas Racing & Gaming Commission is set to review applications from DraftKings and FanDuel to operate online sports betting services in the state. If approved, both companies would partner with existing licensed casinos—DraftKings with Southland Casino Hotel and FanDuel with Oaklawn Racing Casino Resort—under state regulations requiring 51% of gross revenue to be retained by the in-state casino partner. This revenue-sharing model, established to prioritize local economic benefits, has historically deterred third-party operators but appears to be gaining traction as market conditions evolve.

Arkansas legalized sports betting in 2018 via Issue 4, permitting up to four casinos, though only three have operationalized sportsbooks to date. Current licensed operators include Southland Casino Hotel (Betly), Saracen Casino Resort (BetSaracen), and Oaklawn Racing Casino Resort (Oaklawn Sports). These entities currently manage their own platforms but may co-brand with DraftKings and FanDuel if licenses are granted. The Arkansas Gaming Commission has not finalized a timeline for approval but anticipates a decision during its February 26 meeting.

Financial projections suggest significant growth potential. Analyst Jordan Bender estimates Arkansas sports betting handle could reach $1.9 billion by the third year of operations, generating $210 million in state revenue—up from $57 million in 2025. Under a 50/50 market share split, DraftKings and FanDuel could achieve $25–30 million in EBITDA annually after accounting for revenue-sharing agreements and taxes. However, the market structure may create a duopoly, excluding Saracen Casino from partnerships, potentially limiting competitive dynamics.

DraftKings currently offers daily fantasy sports in Arkansas but lacks an online sports betting platform. Analysts view the state's underdeveloped digital infrastructure as an opportunity for national operators to drive adoption. If approved, both companies are expected to discontinue unregulated sports prediction markets in the state. Investors may monitor the outcome, as successful entry could enhance DraftKings' and FanDuel's regional presence and contribute to long-term earnings growth.