Arkansas Lawmakers Approve Mobile Betting Ahead of March Madness
On Tuesday, the Joint Budget Committee approved legislation to legalize mobile sports betting in Arkansas.
Arkansas online sports betting has passed its final legislative vote without any debate, paving the way for statewide mobile wagering. The online sportsbook could be up and running in time for March Madness. The rules include a 51% revenue split requirement with partner sportsbooks, which may deter major brands from entering the state.
— Ryan Butler (@ButlerBets) February 22, 2022
Carlton Saffa stated that mobile betting apps may launch as soon as March 4, 2026, allowing the state to take advantage of NCAA March Madness.
Saffa is the Chief Market Officer for Saracen Casino Resort and mentioned that the company has invested “in the six figures” to create its mobile betting app. Additionally, a “seven-figure marketing campaign” will be launched to support this investment.
Additionally, the decision on mobile sports betting in Arkansas has been postponed.
Mobile sports betting cannot begin until the 10-day filing period has passed.
Casinos were optimistic about the legalization of mobile sports betting before Super Bowl LVI, but national sportsbooks were hesitant to agree to the proposed 51 percent profit-sharing arrangement that would leave the majority of net revenue with the casinos.
The books, like DraftKings and FanDuel, contended that profit-sharing should be discussed between vendors and casinos rather than being mandated by the state.
Sports betting reporter Bennett Conlin of SportsHandle.com suggests that the revenue-sharing rule is responsible for the current situation.
Because of the revenue-sharing rule, which was opposed by many national operators during the approval process, it is probable that some national operators will choose not to enter the Arkansas market at this time. Currently, there are three retail casinos in operation in Arkansas, with the possibility of a fourth being built soon, and each casino is permitted two mobile skins. It is unlikely that big operators such as BetMGM, DraftKings, or FanDuel will enter the Arkansas market in the near future.
Also, Hopeful Arkansas Gamblers Will Wait Once More
If profit-sharing adjustments are not made, national sportsbooks may choose not to participate in Arkansas mobile betting opportunities in the near future. It will be intriguing to observe the performance of casino-branded mobile sportsbooks in this scenario.
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