by Ben Perks
The Arkansas Legislative Council’s Administrative Rule Review Subcommittee has approved a new proposal that would allow online sports betting. The rule change proposed by the Arkansas Racing Commission would let state-based casinos offer online gambling services in a few weeks.
Proposal Awaits Final Approval
After a voice vote on the matter, the subcommittee has recommended that the Joint Budget Committee approve the proposed rule. The committee is scheduled to discuss this new rule next Tuesday.
If approved, the rule change would take effect ten days after the committee agrees to give it the green light. Casinos operating within the Natural State would then be allowed to launch mobile betting apps in early March.
“March Madness, which has been raised several times in the review discussion, formally begins March 13 [when the teams selected are announced],” said the Department of Finance and Administration spokesman Scott Hardin in a written statement.
The prestigious basketball tournament starts with its “First Four” games on March 15 in Dayton, Ohio.
Casinos in Arkansas
Currently, there are three retail casinos in Arkansas: Saracen Casino Resort in Pine Bluff; Southland Casino Racing in West Memphis; and Oaklawn Racing Casino Resort in Hot Springs. The Racing Commission also voted to grant a license to a new gambling retailer in Pope County – Legends Resort and Casino.
“In short, we will be live for March Madness if not sooner,” said Saracen Casino resort chief marketing officer Carlton Saffa.
“But many of the pre-launch functions require demonstrable legality in your jurisdiction before the compliance divisions of the companies necessary to deploy the product will give their OK,” he added.
Southland Casino Racing spokeswoman Natalie Carlson said that they were “looking forward to offering mobile sports wagering” and plan on releasing another statement soon.
The Racing Commission’s proposal would give state casinos more than half of the mobile sports betting proceeds when partnering with online bookmakers. This proposed majority split would be different from laws in the majority of other US states where local gambling retailers only receive 5%-15% of revenue.
Although officials representing the state’s three operating casinos back the rule change, representatives of online sportsbooks Draft Kings Inc., FanDuel Inc., BetMGM, Fanatics, and Bally’s have voiced their disapproval.
Lobbyist John Burris, who represents all of these online betting companies, told lawmakers on Wednesday that the proposed rule is inconsistent with the federal commerce clause, as the state of Arkansas can’t prioritize in-state providers over out-of-state companies.
However, officials from all three of the state’s casinos believe the proposed rule is consistent with state and federal law and doesn’t discriminate against companies based outside the state.
Arkansas Betting Laws
In November 2018, voters approved Amendment 100 to the Arkansas Constitution. This amendment allowed casinos to offer in-person sports wagering options. However, the law change did not allow for providers to offer online services. But as the subcommittee has now recommended the new proposal, it looks like Arkansas will soon allow online betting sites to operate within the state.
Because mobile sports betting is legal in neighboring states Louisiana and Tennessee, Arkansas has faced increasing pressure to allow this form of online gambling. Currently, sports bettors wanting to bet on sporting events would have to cross state lines or sign up with an offshore betting site.
Over $67 million was legally wagered on sports across the state’s three casinos in 2021, earning the state $1.2 million in tax revenue.
View our US legal sports betting law tracker to find out about gambling laws where you live.
Ben is a sports journalist & part-time trader with a passion for finding +EV bets. Ben lives in Madrid, Spain where he enjoys the live poker scene, and sunshine where he covers UFC, MLB, NHL, NBA, as well as tennis betting.
