DraftKings and FanDuel finally roll out betting markets in Arkansas

• DraftKings and FanDuel are now officially represented in Arkansas, one of the last frontier states of their expansion
• The two companies have tethered their offers to in-state casinos and will comply with a 51% revenue-sharing requirement
• Some casinos have raised concerns over specific in-state laws that supposedly prohibit third-parties from running sportsbooks

DraftKings and FanDuel have both launched their sportsbooks in Arkansas on Friday, March 20, after the two companies held back on entering the market, not least because of a restrictive revenue-sharing requirement that they have long found counterintuitive.

No more, it seems, as both companies have pulled the trigger on the market, and have joined following official licensing from the Arkansas Racing Commission, and in time for March Madness. The two companies have had to team up with local casinos, a process known as "tethering."

Specifically, DraftKings has partnered with Southland Casino Hotel in West Memphis, whereas FanDuel has teamed up with Oaklawn Racing Casino Resort in Hot Springs, with the companies accepting the 51% revenue sharing requirement that will go to the in-state casino partners.

However, not everyone is happy with this outcome, as Arkansas’ current laws specify that it should be casinos themselves who run sportsbooks, and not third-party companies such as DraftKings and FanDuel. Scott Hardin, a spokesperson for the commission, commented on why the model, where the two companies are tethered to casinos, worked:

"This would allow the sportsbooks to utilize the technology of DraftKings and FanDuel.You could see the apps themselves change. You could see a lot of marketing around it, and I think it would definitely change the face of how this is marketed across the state."

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