Arkansas Inches Closer To Allowing Mobile Sports Betting

Very quietly, sports bettors have been able to wager on sports through retail sportsbooks. Unfortunately, the access has been limited to three retail casinos: Saracen Casino Resort, Southland Casino Racing, and Oaklawn Racing Casino Resort. It really has been that convenient for a majority of the state’s residents.

To start off what could be an exciting 2022 for Arkansas sports bettors, the Arkansas Racing Commission has given its approval for the implementation of mobile sports betting. For those who don’t know, the Commission oversees much of what goes on in the state’s gambling industry,

Before anyone gets too excited, Racing Commission spokesman Scott Hardin offered this subtle warning in an interview with the Democrat-Gazette: “Whether this item makes the January agenda is yet to be determined. “If ALC approves, the rule changes allowing mobile sports betting would be effective immediately.”

The only real point of contention in the new rule is the revenue split. The ARC has dictated that the casinos are to get 51% of the betting revenue from the online bookmakers. The fear is that the size of the split could potentially scare away some of the biggest online bookmakers in the U.S. Aside from a “state friendly” deal in New York, online operators are used to paying taxes on betting revenue to the tune of 8% to 20% at the top end. Paying 51% to casino partners and then paying taxes on any remaining revenue is a big hill to climb.

John Burris, a representative for sports betting operators DraftKings Inc., FanDuel Inc., BetMGM, Fanatics, and Bally’s is adamant the Commission allows operators to negotiate their own deals with the casinos. Operators are also concerned about a branding issue. According to the Commission’s ruling, the branding of online betting sites would need to carry the name of the licensed casino, not the provider.

Clearly, there are some details to be worked out before the ARC meets on January 28, 2022. It will be at that meeting that the mobile betting rules would be opened for discussion. If that happens and all of the details are worked out and approved, it’s possible Arkansas residents could be legally betting on sports through their mobile devices by springtime.