Arkansas Sports Betting Revenue, Handle and Taxes

Arkansas Sports Betting Revenue 

Sportsbook operators and sports bettors alike are nothing new in the state of Arkansas. Sports gambling was legalized in November of 2018, land-based sports betting launched in July of 2019 and sportsbooks went live online in March of 2022. Despite multiple years of betting in Arkansas, there are just 3 individual sportsbooks that have gone live in the Bear State. The sportsbooks available for sports betting in Arkansas are not exactly nationally recognized names: Betly Sportsbook, BetSaracen and Oaklawn Sports.

Sports betting has grown at a steady pace since it was legalized state-wide. Arkansas has now had both 7-figure monthly handle and revenue for 11 consecutive months now. That follows a stretch of 38 months in which there were just 4 months of 7-figure handle and revenue. The current stretch of growth is impressive considering none of the bigger, more nationally recognized sportsbook operators are live in Arkansas. So far this year, sports betting revenue has topped $13.5 million in Arkansas.

When North American professional sports enter the dog days of summer, betting volume and revenue plateaus as there is not as much activity in the sports world. Volume and therefore revenue picks back up in the late summer and is back in full swing by early Fall with the return of NFL and college football, as well as NBA and college basketball.

Although there are just three online and retail sportsbooks, there is room for growth as the state’s proposed sports betting legislation calls for up to six online operators. In the meantime with Betly, BetSaracen and Oaklawn Sports, whether you are a resident or just passing through, you can have peace of mind knowing you will be betting with legitimate operators in a legal state.

Arkansas Sports Betting Taxes 

With revenue comes, of course, taxes. Sports betting taxes are one of the more appealing reasons for legislators and voters to push for legalized sports gambling. Arkansas was and is certainly no exception. The sports betting tax rate in Arkansas is 13% for the first $150 million in revenue, and 20% above that $150 million threshold. An increase in gambling revenue leads to an increase in taxes, which is the primary goal of a new market.

Taxable revenue in Arkansas has exceeded $6.6 million since the legalization of sports betting in the state, including over $2 million to date in 2023. Unsurprisingly, the primary growth in sports betting revenue and taxes for AR has come since sportsbook operators went online in 2022 and bettors were no longer limited to in-person betting.

The tax revenue in Arkansas is dispersed to a few different areas. Here is the breakdown: The state’s general fund gets 55%; the casino’s host city gets 19.5%; AR Racing Commission Purse and Awards Fund gets 17.5%; and the Casino host county gets 8%.

With that in mind, tax revenue affects residents of Arkansas more than someone who is not a resident, but happens to physically be within state lines at the time of placing the bet. As more sportsbooks are licensed and as the market grows as a whole, the state will only continue to benefit financially more and more.

Arkansas Sports Betting Handle 

If you are not familiar, the handle is simply the amount of money wagered by bettors. It is the amount of money in play across online and in-person sportsbooks. Handle decreased since March, but that has more to do with the aforementioned plateau that comes with a lull in the sports calendar as summer progresses.

In the year from the date operators went live online in March 2022 through the end of March 2023, football and basketball were key drivers behind growth in betting volumes and numbers. During the months of January through March 2023, sports fans and bettors enjoy the heart of the NFL and college football seasons, bowl seasons and playoffs, as well as the NBA season and huge betting weekends in the form of March Madness. Once football and basketball return, so too will sportsbook promotions, website and app traffic and betting volume, and therefore Arkansas Sports Betting Handle, Arkansas Sports Betting Revenue by sport and Arkansas Sports Betting Revenue by state.

Come October, all 4 major North American professional sports will be happening simultaneously in addition to the massively popular college football and basketball. DraftKings and FanDuel daily fantasy are available in AR and they are hopeful to go live with their sportsbooks in 2023. If that is the case, they will likely lead Arkansas Sports Betting Handle and Arkansas Sports Betting Revenue thanks to reputation and existing accounts. While DraftKings and FanDuel may be most familiar to you, make sure to take a look at the original three operators in Arkansas that may have less handle and attractive promotions and bonuses.

Arkansas Sports Betting Handle Per Capita 

Sports Betting Handle Per Capita is exactly what it sounds like. Essentially, Arkansas Sports Betting Handle Per Capita takes that total handle and reflects the handle of each individual bettor. Sports betting data and analytics are typically dominated toward states with higher populations in terms of high revenues. But comparing a smaller state by population and betting handle to a state with a larger population and betting handle, it is possible that a handle per capita is the same or similar in each state.

The Arkansas Sports Betting Handle Per Capita can be calculated by dividing the handle by the population. In the case of Arkansas, they have a population in 2023 of 3,063,152 and as of May had a monthly total sports betting handle of $22,777,209. With that, the sports betting handle per capita of Arkansas is $7.43 per person. Their neighboring state of Kansas has a population in 2023 of 2,936,378 and had a total handle in May of $120,323,444. With that, the sports betting handle per capita of Kansas is $40.97 per person. On the surface, someone would notice that even though Arkansas has a slightly higher population than Kansas, Kansas’ Sports Betting Handle Per Capita is much higher. If Arkansas sees more sportsbook operators go live, they will likely perform incrementally with each one in terms of Arkansas Betting Handle Per Capita.

Arkansas Sports Betting Hold 

Sports betting hold reflects the percentage of money that a sportsbook keeps for every dollar that has been wagered by users. Arkansas sports betting hold percentage is averaging 10.2% since the first month of legal gambling in the state. That 10.2% is aggregated across the 3 legal online sportsbook operators in the state. In 2023, the hold percentage has fluctuated from down to 5.8% in February up to 11.4% in March with remaining months falling in between. The overall average hold percentage of all states is 9.05% so Arkansas sports betting platforms are keeping a higher percentage of wager funds from bettors than that of several other states.

While 10.2% shows solid efficiency of revenue held, it can also come across as risky to the AR population. Arkansas bettors may refrain from wagering often or with high amounts because the percentages may not be in their favor as opposed to other states. Since 2018, the industry hold average has never surpassed a total of 10% for an entire year, but the average is increasing at a steady pace. Arkansas sports betting hold average and industry average will likely be closer in the years to come, which will level the market and hide any concerning hold rates.