Two national sports betting operators have taken formal steps to enter Arkansas through partnerships with the state’s existing casino sportsbooks. FanDuel and DraftKings have submitted applications to the Arkansas Racing Commission seeking approval to operate as third-party partners with one of Arkansas’ three licensed casinos.

Scott Hardin, a spokesperson with the Arkansas Department of Finance and Administration, told KNWA FOX24 that if regulators grant approval, each company could align with any of the state’s three casino sportsbooks. Those properties include Oaklawn Casino in Hot Springs, Saracen Casino in Pine Bluff, and Southland Casino in West Memphis.

Hardin said state rules permit such partnerships provided the Arkansas Racing Commission signs off on the third-party operator and a casino elects to work with that company. Under Arkansas law, the in-state casino must receive at least 51% of the revenue generated through the arrangement. Casinos would also decide whether to enter into agreements and could combine their existing sportsbook operations with a national platform through co-branded mobile applications.

Regulators have not finalized when they will review the applications. Hardin noted that the commission may meet later this month, though agenda items remain undecided. According to reporting from KNWA in Little Rock, the applications have not yet appeared on a published agenda. Commissioners could convene on 26 February to consider whether to authorize licenses, and if approval comes at that time, both operators would be able to launch immediately.

Potential Partnerships and Market Entry

Reporting by Jordan Bender of Citizens indicates that FanDuel is expected to seek a license in partnership with Oaklawn, while DraftKings is said to be aligned with Southland. If the commission approves both arrangements, Saracen would not participate in either partnership under that projected structure.

FanDuel currently operates in 26 states and Puerto Rico and holds the largest market share among U.S. sportsbook operators. DraftKings operates in 27 states. In Arkansas, DraftKings already offers Daily Fantasy Sports, though its online sports betting platform is not yet available in the state. If regulators approve its application, Arkansas would become DraftKings’ 27th operating state for sports betting.

Industry observers note that both companies would provide sports betting only. Arkansas does not permit online casino gaming. A legislative proposal last year that would have allowed iGaming through the state’s three casinos did not advance beyond an initial committee.

Sports betting in Arkansas began in 2022. All legal wagering activity runs through the three licensed casinos. Saracen and Oaklawn each operate their own online sports betting apps, while Southland maintains a partnership with Betly for digital wagering.

Revenue Projections and Market Impact

Market analysts suggest that the addition of FanDuel and DraftKings could significantly alter Arkansas’ wagering landscape. Bender reports that Arkansas gaming revenue per adult currently stands at $29, compared with a national average of $125. He attributes that gap to less developed digital platforms within the state.

Bender projects that by the third year of operation, Arkansas could generate $1.9bn in betting handle and $210m in revenue, an increase from $57m last year. Assuming a 50/50 market share split between the two operators and standard revenue-sharing agreements with their casino partners, each company could produce between $25m and $30m in EBITDA.

He estimates that each operator would invest between $30m and $35m to enter the market, with marketing efforts timed around major sporting events such as March Madness. Although first-quarter 2026 EBITDA could fall below existing forecasts, Bender expects Arkansas operations to contribute positively to full-year 2026 EBITDA once performance stabilizes.

Under the projected structure, the market would function as a duopoly between FanDuel and DraftKings, excluding Saracen from a national-brand partnership. Bender notes that this setup may limit overall gaming revenue compared with more competitive jurisdictions, presenting challenges for policymakers weighing market access and competition.

Both companies are expected to discontinue their sports prediction market offerings in Arkansas if regulated sports betting launches. Based on his projections, Bender maintains a Market Outperform rating on DraftKings with a $38 price target. He also assigns a Market Outperform rating to Flutter, FanDuel’s parent company, with a $275 price target derived from projected 2027 earnings and cash flow.

For now, the decision rests with the Arkansas Racing Commission. If commissioners move forward later this month and grant approval, Arkansas residents could see FanDuel and DraftKings sports betting platforms operating in the state before the end of February.