DraftKings and FanDuel Go Live in Arkansas, Shaking Up the Market
Credit: J. Stephen Conn/Flickr
The two biggest U.S. sportsbook operators are now live in Arkansas. DraftKings and FanDuel both launched their platforms on Friday.
DraftKings partnered with the Southland Casino in West Memphis, while FanDuel has an agreement with Oaklawn Casino. The Arkansas Racing Commission gave both brands the green light on Feb. 26 to obtain vendor licenses. The entry of these two big players took time, as casinos received permission to launch online sportsbooks in 2022.
Southland previously offered an app in collaboration with Betly, which closed on Friday. Saracen Casino is the third casino in the state to offer online sports betting, and it has run its own native sportsbook since 2022.
A rule requiring casinos to retain 51% of sportsbook revenue when working with a third-party betting vendor led DraftKings and FanDuel to raise concerns about the viability of this structure in the past. They now act as vendors in Arkansas, supplying their technology and data to the two respective casinos. The casinos handle the platforms’ operations.
Latest Launches for the Two Heavyweights
DraftKings now has a presence in 30 U.S. states following Friday’s rollout in Arkansas. It most recently launched in Puerto Rico last month and in Missouri in December.
FanDuel is in 26 states since going live on Friday. FanDuel Sportsbook Managing Director Karol Corcoran marked the launch, saying, “Arkansas is home to passionate sports fans and represents an important growth market.”
Oaklawn has operated a sportsbook since July 2019, when it first opened a retail operation. The casino’s General Manager Wayne Smith said that customers will get a “super, industry-leading experience” through the collaboration with FanDuel.
Both FanDuel and DraftKings already operate their respective prediction market platforms in Arkansas, albeit without any sports-related contracts.
Disrupting the Current Market
Saracen Casino has held its position as the number one sportsbook in Arkansas in recent years. It registered $329 million in handle through BetSaracen, with 98% coming from its online product. It called for a block on any out-of-state entities like DraftKings and FanDuel entering the market, but regulators rejected that push.
Oaklawn ranked second on the sports betting list with an online handle of $202 million, while Southland recorded $93M in online handle.
Good Timing
The two platforms launched in the middle of the highly popular March Madness college basketball tournaments. U.S. bettors rank it among the most popular sporting events annually, with the American Gaming Association (AGA) estimating that $3.3 billion will be wagered on the games this year through legal platforms.
The Arkansas Razorbacks remain in the competition after progressing to the Sweet 16 round, where they face the bracket’s top seed, the Arizona Wildcats, on March 27.
The Arkansas Racing Commission plans to closely monitor the market’s performance with the two new players. Officials expect the change to generate more revenue. Arkansas Department of Finance and Administration spokesperson Scott Hardin previously said that the entry of FanDuel and DraftKings is a “game-changer” and could turn millions in tax revenue made last year into billions.
With two of the biggest names in U.S. sports betting now live, Arkansas enters a more competitive phase that could reshape market share and revenue in the months ahead. How quickly DraftKings and FanDuel challenge the established SaracenBet will be key to watch.
Image credit: J. Stephen Conn/Flickr (license)
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