DraftKings Inc. received approval from the Arkansas Racing Commission on February 26, 2026, allowing the company to launch its online sportsbook in the state through a partnership with Southland Casino Hotel. The approval enables DraftKings to operate as a platform provider, a structure that sidesteps Arkansas’s 51% revenue‑sharing rule that previously barred national operators from entering the market.
Arkansas has offered legal online sports betting since March 2022, but the state’s unique regulatory framework required third‑party operators to allocate more than half of net sports betting revenue to a local casino partner. DraftKings’ agreement with Southland Casino Hotel allows the company to act as a technology platform rather than a third‑party operator, thereby avoiding the 51% tax and enabling national brands to compete alongside local operators such as Betly, BetSaracen, and Oaklawn Sports.
In 2025, Arkansas generated a total sports betting handle of $639.5 million, with online wagering accounting for $617.55 million. DraftKings’ entry adds a new national player to a market that was previously dominated by local operators, and the company will compete directly with FanDuel, which is also launching through Oaklawn Casino. Arkansas will become DraftKings’ 30th or 31st U.S. state, expanding the company’s coverage to 53% of the adult U.S. population and positioning it to capture a share of the state’s growing handle.
The launch is expected in the coming days, timed to coincide with the start of the NCAA March Madness tournament. The timing is strategic, as the tournament drives a surge in sports betting volume and offers DraftKings an opportunity to acquire new customers during a high‑visibility period.
From a business perspective, the approval represents a significant expansion of DraftKings’ geographic footprint and a new source of revenue in a mature market. The partnership structure may also signal a broader shift in Arkansas’s regulatory approach, potentially opening the door for additional national operators and increasing competition, which could spur innovation and better pricing for consumers.
On February 27, 2026, DraftKings’ stock closed 2.40% higher at $23.49 per share, while pre‑market trading on the same day showed a 2.6% decline. The mixed reaction reflects investor caution amid broader market volatility, but the approval itself is viewed as a positive development for the company’s growth prospects.
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