Arkansas Sports Betting Overview
Arkansas has expanded its casino and sports betting market since it became legal to make sports bets at casinos in 2018 and online in March 2022. Regulated by the Arkansas Racing Commission, The ‘Natural State’ has a relatively small market with fewer operators than other states but has begun to draw significant revenue.
In 2024, Arkansas’ casinos and sportsbooks generated a Gross Gaming Revenue (GGR) total of $115.68 million. The state charges a tax rate of 13% on the first $150 million of net gaming receipts and 20% on net gaming receipts exceeding $150 million (American Gaming Association, 2022).
That tax revenue is distributed like this:
- 55% to the Arkansas General Revenue Fund.
- 17.5% goes to the Arkansas Racing Commission Purse and Awards Fund
- 8% goes to the county in which the operator is located.
- 19.5% goes to the city or town where the operator is located. If it is not located within a city or town, then distribution goes to the county.
The extent to which the Arkansas betting handle can generate tax revenue will depend on the industry's growth and whether the current highly restricted model, which allows consumers just three online sports betting options, accommodates that growth.