Online Casino Gambling Legislation on the Table in Arkansas

Arkansas has only three mobile sports betting apps operating within its boundaries but if one legislator has his way, the state will expand its gaming footprint to include iGaming.

Shell Bill

Arkansas will never be considered a hotbed of gambling but in 2022 the state’s three licensed online sportsbooks, BetSaracen, Oaklawn Sports and Betly launched in the Land of Opportunity. But now Senator Bryan King has drafted Joint Resolution 8, which is a bit nebulous and lacks specifics, thus the reason it is referred to as a shell bill.

The bill intends to “amend Arkansas 32 Constitution, Amendment 100, concerning casino gaming.”

That is enough of a window to let the world know it is an online casino gambling bill, with specifics to be added at a later date. And at least one of the state’s four licensed land-based casinos has expressed interest in a digital gaming opportunity if one should arise. The Saracen Casino Resort in Pine Bluff had already sent a letter to the Arkansas Racing Commission expressly to discuss iGaming but that topic had been put on hold by the commission due to other more pressing concerns.

High Stakes, Higher Taxes

Carlton Saffa, Saracen Casino’s chief marketing officer, stated last year, “It would exactly mirror what we did with sports betting. With sports betting, we said ‘let’s go from the four walls of the casino to the four borders of Arkansas.’” Senator King is a proponent of online casino gaming, stating, “We desperately need the revenue to reduce our high crime rate and keep families and communities safe.”

The same reason there is a lack of major players in the Arkansas sports betting market, ala FanDuel, DraftKings, and Caesars to name a few, could also prevent them from entering the more lucrative online casino gaming market. The national platform providers must share 51% of their revenues with whatever casino they partner with to provide them market access, in addition to paying up to 20% to the state on revenues.

Long Road Ahead

The warm embrace that sports betting has received from the 38 (soon to be 39 states with Missouri set to launch this year) has been absent from the welcome the iGaming industry has received. Only seven states including New Jersey, Delaware, West Virginia, Pennsylvania, Michigan, Connecticut and Rhode Island license and regulate online casino gaming within their respective borders.

Despite iGaming being a much more lucrative form of digital gaming, many state legislators have been apprehensive about what they consider to be a more addictive form of gambling with 24-hour digital casinos at the ready on any PC or mobile device.

Moreover, many, although not all, land-based casino operators are reluctant to embrace iGaming for fear it will cannibalize their business while union workers are concerned about the job losses that may result from their employers’ decreased bottom lines.

Oaklawn Racing Casino Resort in Hot Springs has already voiced its opposition to Saracen’s iGaming proposal and there will undoubtedly be other anti-gambling forces that will mobilize should King’s bill gain traction in the legislature.