FanDuel and DraftKings Make Deals to Launch in Arkansas

The online sports betting market in Arkansas is about to be turned on its head.

After years of neglecting the state, FanDuel and DraftKings have both reached agreements to launch their online sportsbooks in the Natural State. The industry leaders have held off on entering the small market due to its high operating costs. The state requires all sportsbooks to partner with a tribal casino, which is entitled to at least 51% of the net revenue.

FanDuel partnered with Oaklawn Casino Racing Resort, which had offered its own in-house mobile platform. 

DraftKings’ deal was with Southland Casino Racing, which had previously worked with Betly to offer in-house and mobile sports betting.

Arkansas’s sports betting laws consider the casino licensee to be the actual mobile sportsbook operator. Their commercial partners are considered to be vendors, supplying the casinos with odds and data. However, both mobile platforms will be almost indistinguishable from those offered by the industry giants in other US markets. 

The state legalized sports betting back in 2022, but had been the only legal market without a major commercial operator. 

Bad News for BetSaracen

While bettors and the two casino licensees are celebrating the impending launch of DraftKings and FanDuel, there was one significant loser from the deal.

The Saracen Casino Resort has been offering its BetSaracen mobile sportsbooks since May 2022. It had established itself as the state’s highest-grossing platform, but it won’t be able to compete with the industry’s two largest operators.

Representatives from the Saracen Casino pleaded with lawmakers to reject the licensing partnerships with the two commercial operators. They warned of the damage it would do to its own platform and the dangers it could pose to the state’s market.

Saracen’s failure to sway lawmakers may force them to add a partner of their own to compete with it. While they won’t find one as massive as DraftKings or FanDuel, Fanatics offers a fantastic opportunity. The operator has grown quickly and has managed to compete with the two industry leaders in some markets.