Update on Mobile Sports Betting in Arkansas

Hopes were high when sports betting formally launched in Arkansas in March 2026. It was at that time that the state joined the ranks of some 33-34 other states that had already approved such sports betting activities.

To date, five betting operations have gone live, including two bookmakers that are tethered to existing retail casinos, plus a large selection of operators that are operating independently. Here is a look at the ongoing sports betting operations:

• DraftKings Sportsbook — operating as a partner with Southland Casino Hotel in West Memphis


• FanDue Sportsbook - operating as a partner with Oaklawn Racing Casino Resort in Hot Springs


• BetSaracen — proprietary operation run by Saracen Casino Resort in Pine Bluff


• Independent operators include Betly, Caesars Sportsbook, BetMGM, ESPN BET, Bet365, and Fanatics Sportsbook (affiliated with various casinos)
  

Uniquely, third-party operators are required to share 51% of their revenue with their host casinos. In the case of DraftKings and FanDuel, they are being treated as platform providers or vendors, allowing them to retain the 51%.

Recent Results

With the first month of operations in the books, it would be fair to say the results are mixed. Some operators were winners while others got off to a rough start, losing millions. Here is a look at the results as reported by the Arkansas Department of Finance and Administration:

Southland, with partner DraftKings, lost $6.1 million on its mobile sportsbook - Revenue/handle of $18.2 million and payouts of $23.3 million.

Oaklawn Casino, with partner FanDuel, lost $4.2 million on its mobile sportsbook - Revenue/handle of $35.7 and payouts of $39.9 million.

Saracen Casino lost $2.15 on its mobile sportsbook - Revenue/handle of $32.6 million and payouts of $34.75.

Other operators reported similar results, with a couple of them showing very small profits.

Analysts warn that losses in the early months are common. This is due in large part to acquisition costs related to securing new customers. Those acquisition costs generally come from the offering of bonus promotions that give new customers an initial boost in their bankrolls. As acquisition costs normalize, one would expect that profits will settle in the 7%-%8 range monthly.

It's noteworthy that DraftKings and FanDuel did not actually launch until March 20. With only 11 reporting days, it's hard to get a good sense of what really happened. A clearer picture should come in April.

Arkansas Retail Casinos Hold Steady

The introduction of mobile sports betting did not affect the performance of the state's retail casinos. The Arkansas Department of Finance and Administration reported that all three casinos remained profitable.

The combined net casino revenue for all three retail casino operations hit $185.66 million in March. That's up 1% for the same month last year. In total, the casinos paid $30.62 million in taxes to the state. That's a 3% increase year-over-year, according to the department.

If there is good news hidden in these results, it comes from reports provided by DraftKings and FanDuel. In both cases, strong early player activity was reported.