Arkansas Expands Legal Sports Betting Market with Major Operator Partnerships
FanDuel and DraftKings launch in Arkansas following regulatory approval of new casino partnerships.
1Market Expansion Milestone
Arkansas sports betting reached a significant turning point on February 26, 2026, when the Arkansas Racing Commission unanimously approved FanDuel and DraftKings as licensed operators. This development marks a major shift for the state, which legalized sports betting in 2019 and launched online platforms in 2022, previously limited by restrictive revenue-sharing requirements.
2Strategic Casino Partnerships
The new market entry relies on partnerships with existing commercial casinos to navigate state regulations. DraftKings has officially partnered with Southland Casino Hotel, replacing the previous Betly platform. Meanwhile, FanDuel now operates under the Oaklawn Casino license, rebranding the former Oaklawn Sports app to be powered by the national FanDuel platform infrastructure.
3Revenue Sharing Dynamics
A core component of the Arkansas regulatory framework remains the 51%-49% revenue split, which heavily favors in-state casino partners. Despite initial industry apprehension regarding these terms, major operators like DraftKings and FanDuel have accepted the arrangement to gain access to the state market, maintaining the status quo for all commercial casino operators.
4Taxation and State Revenue
Arkansas imposes a 13% tax rate on the first $150 million in gaming revenue, increasing to 20% for any earnings beyond that threshold. Between January and October 2025, the state collected $7.229 million in tax revenue. These funds are distributed among the state general fund, local municipalities, and the commission's purse fund.
5Alternative Prediction Markets
Beyond traditional sportsbooks, Arkansas users can access federally regulated prediction markets like Kalshi and Polymarket. These platforms allow users to trade contracts on sporting event outcomes. While distinct from standard sports betting, these markets are legal in the state, providing additional avenues for participants to engage with event-based financial trading contracts.
6User Eligibility and Rules
Participants must be at least 21 years old to engage in legal sports betting within Arkansas. While residency is not a requirement for account creation, users must be physically located within state lines to place wagers. The state permits betting on professional and collegiate sports, including player props and various awards.
7Promotional Landscape Overview
To capture market share, both FanDuel and DraftKings are offering competitive welcome bonuses for new Arkansas users. These promotions typically involve bonus bets tied to initial deposits or small qualifying wagers. Bettors are encouraged to compare these specific sign-up offers, as the current landscape provides significant incentives for those entering the market.
8Regulatory Oversight Framework
The Arkansas Racing Commission maintains strict oversight of all in-person and online betting activities. The commission manages licensing, ensures compliance with state laws, and provides resources for problem gambling. As the market evolves, the commission continues to regulate the three commercial casinos, each of which is permitted to operate two sportsbook apps.