Scott Hardin, spokesperson for the Arkansas Department of Finance and Administration, told local Fox News affiliate KNWA that if approved, the two companies would be permitted to partner with any of Arkansas’ three licensed casino sportsbooks.
Those properties are Oaklawn Casino in Hot Springs, Saracen Casino in Pine Bluff and Southland Casino in West Memphis.
Reporting by Jordan Bender of Citizens indicates that FanDuel is expected to partner with Oaklawn for its licence, while DraftKings is said to be aligned with Southland.
Under state rules, such arrangements require approval from the Arkansas Racing Commission (ARC), and any third-party partnership must allocate at least 51% of revenue to the in-state casino.
Hardin said casinos would retain discretion over whether to enter into agreements with third-party operators. If approved, casinos could co-brand sports betting apps offered in Arkansas, combining their existing operations with national platforms.
The ARC has not finalised a timetable for reviewing the applications, though a meeting later this month is under consideration.
Commissioners could convene on 26 February to vote on whether to authorise licences for FanDuel and DraftKings. Approval would allow both operators to launch immediately.
DraftKings currently offers Daily Fantasy Sports in Arkansas, but does not provide online sports betting. Market analysts suggest that entry by the two national brands could reshape the state’s wagering landscape.
Bender points out that Arkansas gaming revenue per adult currently stands at $29, well below the national average of $125, a gap attributed to less developed digital platforms.
Arkansas sports betting market on the rise
Bender projects that by the third year of operation, the state of Arkansas will generate $1.9bn in betting handle and $210m in revenue, up from $57m last year.
Based on a 50/50 market share split and revenue-sharing agreements with the casinos, each operator could generate between $25m and $30m in EBITDA.
The initial investment cost for each operator will range from $30m to $35m, and marketing will occur in line with major sporting events such as March Madness.
Although first-quarter 2026 EBITDA may dip relative to existing forecasts, Bender’s projections indicate that Arkansas would become accretive to full-year 2026 EBITDA as historical state performance stabilises.
The market structure would effectively create a duopoly, excluding Saracen from participation with either operator, according to Bender’s analysis.
He notes that such a configuration may not reach the full potential gaming revenue seen in more competitive jurisdictions, presenting a conundrum for policymakers balancing market access and competition.
Both companies are likely to discontinue their sports prediction market offerings in Arkansas upon the launch of regulated sports betting operations.
As a result of the projections, Bender maintains a Market Outperform rating on DraftKings with a $38 price target, based on multiples of projected 2027 EBITDA and free cash flow.
FanDuel parent company Flutter retains a Market Outperform rating and a $275 price target, similarly derived from 2027 earnings and cash flow estimates.
Dingnews.com 20/02/2026