LITTLE ROCK, Ark. – On Thursday, the Arkansas Racing Commission approved rules that enable mobile sports betting in Arkansas.
Arkansas casinos have said this is something a lot of people have asked about since sports betting was approved by voters in Amendment 100.
Scott Hardin of the Department of Finance and Administration said the numbers seem to support sentiment.
“The stake of $ 33 million in 2020 will be increased to $ 60 million in 2021. More and more Arcansans want to take part, and I think that’s why the commission approves it, ”Hardin said.
Big changes in sports betting in Arkansas
Currently, Arkansan’s sports betting can only place it in one of the state’s three casinos. Much of the state is nowhere near Hot Springs (Oaklawn), West Memphis (Southland), or Pine Bluff (Saracen) and these rules would allow the entire state to participate if they so choose.
“We have just opened the market to 3 million people who are no further from their pockets when they want to place a bet,” said Saracen Casino’s Chief Market Officer Carlton Saffa.
The tax levy on sports betting reflected what was being wagered. In 2020, $ 583,000 in taxes was collected from sports betting, and in 2021 the state raised $ 1.2 million.
Hardin said conservative estimates suggest that adding mobile betting could triple those numbers.
The Racing Commission has also approved that casinos must retain at least 51% of sales when they have a contract with a third party provider such as Fan Duel or Draft Kings. Other states have very different divisions with these companies.
“But you are dealing with a national operator who essentially borrows your license rights? You do everything under your license and in return they say, ‘Here’s 5% of what we did, thank you very much,’ ”Saffa said.
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Of the 1,000 or so responses the Commission received, around 20% were against extending it to mobile betting.
Saffa said Saracen puts proper identification and geo-tagging at the top of their priorities when it comes to an app.
Saffa said that identification scanning like a driver’s license will be part of the sign up process and Saracen is working with the very latest in technology when it comes to only allowing bets from Arkansas.
Hardin said the rule was approved to help keep better bets in Arkansas and to comply with federal law.
“If you crossed the line to Texas in Texarkana, you couldn’t place the bet, but once you crossed the line again I’d say all bets are off but that wouldn’t be fair,” Hardin said.
The Arkansas Legislative Council is slated to take the issue on Jan. 28 for final approval, and if approved, casinos could host mobile sports betting in time for the Super Bowl on Feb. 13.
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