Arkansas regulators have opened the door for the nation’s two largest online sportsbooks to begin operating in the state. On Thursday, the Arkansas Racing Commission voted 7-0 to grant vendor licenses to DraftKings and FanDuel, allowing both companies to launch mobile sports betting platforms through partnerships with existing casinos.

The decision ends years of absence for the two brands in Arkansas’ online market. Although the state authorized mobile sports wagering in 2022, its framework required any third-party operator to give 51% of sports betting revenue to its casino partner. That structure discouraged major national sportsbooks from entering.

Recent agreements between the casinos and the operators changed that dynamic. Instead of functioning as third-party operators, DraftKings and FanDuel will serve as platform providers. Under this structure, the casinos retain 51% of revenue and control of the platform, satisfying state requirements while enabling the national brands to participate.

Regulators and casino executives expect the shift to significantly increase betting activity in Arkansas, which has posted the lowest per capita sports betting revenue among states with legal mobile wagering.

Casino Partnerships Reshape Market Access

DraftKings reached a market-access agreement with Southland Casino Hotel, while FanDuel partnered with Oaklawn Racing Casino Resort. The change allows both sportsbooks to enter Arkansas under terms acceptable to the state’s revenue-sharing rules.

DraftKings’ launch in Arkansas will expand its sports betting footprint to 30 states. The company recently debuted online sports betting in Puerto Rico after securing a retail deal in November 2025 with the Mashantucket Pequot Tribal Nation. DraftKings confirmed that its Puerto Rico mobile sportsbook is available only to residents, not visitors.

In Arkansas, DraftKings will replace Betly at Southland. Betly, owned by Delaware North, was the first online sportsbook to operate in the state after launching in 2022.

FanDuel’s agreement with Oaklawn brings changes for existing customers. Oaklawn had operated its own mobile product, Oaklawn Sports, powered by Kambi. Oaklawn General Manager Wayne Smith confirmed that the current app will be discontinued, requiring bettors to download the FanDuel app to continue wagering. Although neither DraftKings nor Southland executives detailed technical changes, switching platform providers typically involves a new application.

Jonathan Edson, FanDuel’s senior vice president of partnerships, explained that the company’s larger scale now enables it to structure agreements that comply with Arkansas’ 51% requirement while accepting a partnership fee below 50%.

For customers, regulators said the experience should mirror what bettors find in other states where FanDuel and DraftKings operate. Both companies hold roughly 33% of the national market share and offer similar betting lines and wagering options across jurisdictions. Representatives for DraftKings projected that adding the two leading operators could increase Arkansas’ betting handle by as much as five times. Oaklawn’s Smith and Southland General Manager Osi Imomoh agreed with those growth expectations.

Saracen Raises Objections

The unanimous approval came despite vocal opposition from Saracen Casino Resort, which operates BetSaracen, the state’s highest-grossing sportsbook.

Saracen Chief Marketing Officer Carlton Saffa urged commissioners to reject the applications. “Today we have a system that is working for Arkansas, one that other states want to replicate,” Saffa said according to SBC Americas. “If you allow this, you will break this system.”

Saffa raised several concerns. He noted that DraftKings and FanDuel have opposed a proposed online sports betting bill in Wisconsin that was modeled after Arkansas’ framework and would require operators to remit at least 60% of revenue to tribal partners. He also questioned why Arkansas casinos had not previously partnered with national brands if their presence would substantially expand the market.

Saracen further pointed to promotional spending in neighboring Missouri, where DraftKings and FanDuel collectively issued more than $100 million in free play during the December 2025 launch month. Arkansas currently does not cap deductions tied to free play or bonus bets, though lawmakers could revisit that policy.

Commission staff addressed additional procedural concerns, clarifying that FanDuel applied through a key employee license at the commission’s request, since Betfair is the licensed vendor entity. Chairman Alex Lieblong stated that the contracts meet the only stipulation required under state rules: the casino must retain 51% of the revenue. A representative from the attorney general’s office added that applications satisfying all regulatory requirements should receive approval.

Companies Prepare for Launch

Both operators signaled that their Arkansas launches are imminent. While neither provided a specific date, DraftKings indicated the rollout would occur soon.

“We’re excited to team up with Southland Casino Hotel to bring DraftKings’ top-rated mobile sportsbook to Arkansas and introduce fans to our best-in-class sports betting offering,” said Gregory Karamitis, DraftKings’ executive vice president and general manager of sports. “As March Madness approaches and several major sports are underway, we look forward to serving Arkansas customers with innovative features, including our No. 1 live betting experience and a continued commitment to responsible gaming.”

FanDuel issued a brief statement following the vote. “We are grateful to the Arkansas Racing Commission for approving us as a vendor,” a company spokesperson said. “We look forward to next steps.”

With regulatory clearance secured, Arkansas will soon join the roughly two dozen states where both FanDuel and DraftKings operate mobile sportsbooks. State officials anticipate that the arrival of nationally recognized brands will reshape the competitive landscape and expand overall wagering activity in the Natural State.