DraftKings and FanDuel Win Arkansas Approval for March Madness Launch
Arkansas is officially opening the door to the two most dominant names in U.S. sports betting.
In a unanimous 7–0 vote on Thursday, the Arkansas Racing Commission approved vendor licenses for DraftKings and FanDuel, clearing the way for both operators to launch in the state ahead of the 2026 NCAA Tournament.
The decision marks a pivotal shift for Arkansas, which until now had operated as a local-only mobile betting market. If implementation proceeds on schedule, both sportsbooks are expected to go live before Selection Sunday on March 15, positioning the state to capitalize on one of the largest betting events of the year: the 2026 edition of the NCAA Division I Men’s Basketball Tournament.
A Strategic Breakthrough: The “Powered By” Model
For years, Arkansas’ regulatory structure discouraged national operators from entering the market. A key obstacle was the state’s revenue-sharing framework, often referred to as the “51% Rule,” which requires that a majority of net gaming revenue remain with the in-state casino partner.
Rather than seeking independent market access, DraftKings and FanDuel will enter Arkansas under a “Powered By” vendor model.
- DraftKings will partner with Southland Casino Hotel in West Memphis.
FanDuel will align with Oaklawn Racing Casino Resort in Hot Springs.
Under the approved framework:
- Southland’s Betly app will transition to a DraftKings-powered platform.
- Oaklawn’s sportsbook will relaunch as Oaklawn Sports Powered by FanDuel.
Critically, neither operator will launch a standalone “skin.” Instead, they will act strictly as vendor licensees, supplying technology, trading infrastructure, and brand integration while the casinos retain primary licensure.
Regulators also confirmed this arrangement does not utilize each casino’s second allowable mobile skin, preserving future optionality for market expansion.
| Casino Partner | Location | Digital Transition |
| Southland Casino Hotel | West Memphis | Betly app will become Southland Powered by DraftKings |
| Oaklawn Racing Casino | Hot Springs | Oaklawn Sports will become Oaklawn Sports Powered by FanDuel |
Why March Madness Matters
The timeline is no coincidence.
Commission spokesperson Scott Hardin confirmed the objective is to launch before the NCAA Tournament begins. March Madness consistently ranks among the highest-handle betting windows in the U.S., rivaled only by the Super Bowl in many jurisdictions.
For Arkansas, a state with passionate college basketball support and a rapidly modernizing betting infrastructure, entering the tournament with two nationally recognized platforms could produce an immediate surge in wagering volume.
Oaklawn General Manager Wayne Smith projected during Thursday’s meeting that adding national brands could increase Arkansas sports betting revenue by as much as fivefold.
The Horse Racing Ripple Effect
The financial implications extend well beyond sportsbook balance sheets.
Under Arkansas gaming law, a portion of sports betting revenue contributes to horse racing purses. That link is particularly meaningful for Oaklawn, home of the prestigious Arkansas Derby, a key stop on the road to the Triple Crown.
An increase in sportsbook revenue directly strengthens racing prize pools, reinforcing Arkansas’ standing in the national thoroughbred circuit. In effect, digital betting growth fuels the sustainability of traditional racing.
Industry Opposition: Saracen Pushes Back
Despite the unanimous vote, the hearing drew vocal opposition from Saracen Casino Resort, the state’s third-licensed casino.
Saracen, which operates independently without a national sportsbook partner, warned that aggressive promotional tactics, such as deposit bonuses and free-play incentives, could erode taxable gaming revenue.
Chief Marketing Officer Carlton Saffa argued that while total betting handle may rise, heavy promotional deductions could compress net taxable revenue, a regulatory tension seen across multiple states in the post-PASPA era.
Still, commissioners ultimately prioritized consumer choice, platform modernization, and long-term market growth.
What Happens Next
With regulatory approval secured, attention shifts to execution.
Before launch, both operators must:
- Complete final vendor licensing requirements
- Pass geolocation and compliance testing
- Finalize app rebranding and account migration processes
If timelines hold, Arkansas bettors could access DraftKings- and FanDuel-powered platforms as early as the First Four on March 17.
A Market Transformed
Thursday’s vote signals more than just new logos in app stores.
It represents Arkansas shedding its identity as a local-only betting jurisdiction and embracing national-scale competition. By pairing established casino operators with the country’s two largest sportsbook brands, regulators have engineered a hybrid model designed to preserve local revenue while delivering best-in-class technology.
The expansion also aligns with DraftKings’ broader 2026 strategy, as the company recently outlined plans to pursue a $10 billion prediction market opportunity amid a wider corporate restructuring, signaling a push to diversify beyond traditional sportsbook growth.
With March Madness approaching, the state is poised to enter its most consequential betting window yet, armed with brand power, regulatory clarity, and significantly higher expectations.
Arkansas sports betting just entered a new era.
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