The Arkansas Revenue Split: Why FanDuel and DraftKings Finally Bet on the Razorback State
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After years of operator hesitation over a strict 51% revenue-sharing mandate, the industry's two biggest players have moved in to capture a market that recently cleared $1 billion in handle.
For years, Arkansas represented a paradox in the sports betting industry: a market with proven demand but a regulatory structure that kept the industry's heaviest hitters on the sidelines. The primary friction point was a revenue-sharing mandate that required third-party operators to surrender more than half of their earnings to in-state partners.
According to reporting from CBS Sports, the Arkansas Racing Commission (ARC) approved a 51% revenue-sharing rule on December 30, 2021. This rule, which the Arkansas Legislative Council finalized on February 22, 2022, dictates that 51% of revenues from third-party operators go to the in-state partner, leaving only 49% for the operator. For many books, this split was a non-starter, leading to a limited landscape of available apps for residents.
However, the tide turned on February 26, 2026, when the ARC unanimously approved FanDuel and DraftKings as sportsbooks in the state. The decision signals that the industry's dominant players are now willing to accept the 51% split to secure a foothold in a state that has shown significant growth. CBS Sports reports that Arkansas sportsbooks cleared $1 billion in total handle by September 24, 2024, proving the market is a "sleeping giant" worth the compressed margins.
**The Strategic Partnerships**
To enter the market, the two operators aligned with established gaming entities in the state. FanDuel formed a partnership with Oaklawn Casino, while DraftKings aligned with Southland Casino Hotel.
This move effectively replaces previous localized offerings. CBS Sports notes that the Oaklawn Sports mobile app, which operated under the Oaklawn Casino license, will cease operations and be replaced by the FanDuel app, which will be branded as "powered by Oaklawn Sports." Similarly, DraftKings will operate under the license previously utilized by Betly at Southland Casino Hotel.
**Market Positioning and Launch Mechanics**
Both operators launched their sports betting operations in Arkansas on March 20, 2026. Their entry is marked by aggressive acquisition strategies designed to migrate users from smaller local apps to their global platforms.
FanDuel is positioning itself as a high-value option, offering new users up to $1,000 in "bet reset tokens" if they place a $5 bet on each of the five days following their signup. DraftKings is focusing on a lower-friction entry point, providing $150 in bonus bets to new users who spend $5 or more.
From a product perspective, the two books are targeting different bettor profiles. CBS Sports describes FanDuel's interface as an aesthetically pleasing blue-and-white design known for competitive odds. DraftKings, leveraging its daily fantasy sports (DFS) roots, is leaning into player data, statistics, and same-game parlays to attract research-driven bettors.
**The Competitive Landscape**
While FanDuel and DraftKings now dominate the traditional sportsbook space, the Arkansas market includes other avenues for wagering. CBS Sports reports that prediction markets such as Polymarket and Kalshi are legal in the state because they are federally regulated trading markets. These platforms allow users to trade contracts on sporting outcomes, providing a different mechanism for engagement than the traditional sportsbook model.
**Industry Context: The Long Road to Legalization**
The current state of the market is the result of a multi-year legislative evolution. Following the Supreme Court's 2018 ruling that the Professional and Amateur Sports Protection Act (PASPA) was unconstitutional, Arkansas voters passed Issue 4 (Amendment 100) on November 6, 2018. This authorized legal sports betting at licensed casinos, leading to the first legal wager—a $5 bet on the Dallas Cowboys—at Oaklawn Racing Casino Resort on July 1, 2019.
Online betting followed with the passage of House Bill 1942 in April 2021. The initial online rollout saw the launch of Southland Casino's Betly on March 5, 2022, Saracen Casino's BETSaracen on May 10, 2022, and the Oaklawn Sports app in August 2022.
With the entry of FanDuel and DraftKings, the Arkansas market has shifted from a fragmented system of casino-led apps to a consolidated landscape dominated by the industry's largest operators, who have decided that the volume of the Arkansas market outweighs the cost of the 51% revenue split.