Arkansas legislative panel OKs mobile sports betting; market could launch by March amid controversy

Mobile sports betting could soon become a reality in Arkansas, where sporting events wagering is currently only legal at the state’s three casinos. A set of rules introduced to that end by the Arkansas Racing Commission in late 2021 has now been approved by a legislative subcommittee.

The rules and regulations would allow licensed casinos in the Natural State to begin taking mobile wagers from customers anywhere within Arkansas. On Thursday morning, the Administrative Rule Review Subcommittee recommended that the Joint Budget Committee approve the proposal.

Should the Joint Budget Committee sign off on the rules in its next meeting, scheduled for Tuesday morning, commissioners would then have to file the proposal with the secretary of state’s office, reports Northwest Arkansas Democrat Gazette. The rule would become effective 10 days later. A launch could be expected as early as March.

However, the proposed expansion of mobile wagering has been met with controversy. In a statement on Thursday, Brian Bowen, chief deputy of the attorney general’s office, said the office believes the rule “can be defended” should there be a legal challenge to it, according to Arkansas Times. 

Bookmakers oppose the rule, which limits the amount of profit that can be paid to third-party vendors, and said it conflicted with the federal commerce clause. Casino lawyers, on the other hand, claim the clause doesn’t apply.

Casinos operating in Arkansas, which would benefit from mobile sports betting rule passage, include Oaklawn Racing Casino Resort in Hot Springs, Saracen Casino Resort in Pine Bluff, and Southland Casino Racing in West Memphis.

The rule would define an online sports pool as an operation in which wagers on sporting events are made over the Internet on websites or mobile applications, either through computers, mobile devices or other approved devices through a gaming system approved by the state’s Gaming Commission.

In order to operate an online sports pool, casino licensees must first operate a sports pool within the casino premises. The rule further says the operation of online betting should be prohibited in circumstances in which a majority of the net casino gaming receipts are paid to a third-party vendor, which is what operators have been protesting.

Should the rule pass, it would grand Arkansas casinos more than half of the proceeds when partnering with online operators: this split would set Arkansas apart from other markets in the US, where the average share is between 5% to 15% The list of operators opposing the rule includes heavyweights DraftKings, FanDuel and BetMGM. 

On the other hand, Stephen Lancaster, attorney for Southland Casino Racing, argued the rule requiring 51% of revenue to stay with casinos would be beneficial for the state; while a representative for Saracen Casino said giving bookmakers majority of the income would end casino control over an element of their business.