Arkansas Racing Commission approves mobile sports betting
The Arkansas Racing Commission unanimously approved changes to the state’s gambling rules that will allow mobile sports betting. The next step for the measure is a legislative committee vote.
US.- The Arkansas Racing Commission (ARC) unanimously approved changes to the state’s gambling rules that will allow mobile sports betting through local casinos. The rule changes must now be approved by the Arkansas Legislative Council (ALC), which is expected to meet on January 28.
Scott Hardin, ARC spokesman, said after the meeting that lasted two hours: “If ALC approves, the rule changes allowing mobile sports betting would be effective immediately.”
The Racing Commission also approved that casinos must keep at least 51 per cent of revenue if they are contracted with a third-party vendor such as FanDuel or Draftkings. Other states have much different splits with those companies.
The 51 per cent split with established and licensed casinos —Saracen Casino Resort in Pine Bluff, Southland Casino Racing in West Memphis, Oaklawn Racing Casino Resort in Hot Springs, and the recently licensed Legends Resort and Casino in Pope County— sets Arkansas apart from the rest of the nation, where the average share is 5-15 per cent with local casinos.
John Burris with the Capitol Advisors Group —who represents online sports betting operators DraftKings Inc., FanDuel Inc., BetMGM, Fanatics and Bally’s— said they were excited when it was announced that sports betting would be allowed in Arkansas.
“We think it’s a great opportunity. I think if I had one point, it would be that it’s not us versus them. Us being sports betting and them being the three in-state casinos,” Burris said.
“I think that perception has developed, but it’s really not the case. We view it as an opportunity to bring to a marketplace through the casinos revenue and a player who is generally being unregulated and utilised now.”
On the other hand, Burris asked commissioners to amend the rule to allow for the sports betting companies to negotiate the split directly with the casinos, with the casinos having complete control to “accept or reject” that offer.
“We’re asking the rule and government not to put restrictions that prevent this from being an open and competitive marketplace,” Burris said.
Hardin with the Department of Finance and Administration said the numbers seem to back up the sentiment: “$33m bet in 2020 moving to $60m in 2021. More and more Arkansans want to participate in this and I think that’s why you see the Commission approving this,” he said.
In 2020, $583,000 was collected in taxes from sports betting and in 2021 the state brought in $1.2m. Hardin said conservative estimates say those numbers could triple with the addition of mobile betting.
The Arkansas Legislative Council is scheduled to take up the issue for final approval on January 28 and, if approved, casinos could have mobile sports wagering up in time for the Super Bowl on February 13.
See also: Arkansas Racing Commission opens consultation on mobile sports betting
