Super Bowl Mobile Wagering Nixed in Arkansas, But Maybe By March Madness

Legal mobile sports betting in Arkansas won’t be available in time for the Super Bowl this Sunday, but a legislative vote to authorize it could happen a few days after the NFL’s marquee event.

With action at the Capitol in Little Rock, mobile sports betting could be up and running in time for March Madness, the collegiate basketball tournament competition that attracts heavy wagering.

Vote Delayed on Mobile Sports Betting

The state Racing Commission, which regulates gambling in Arkansas, approved a rule change in late December to allow mobile waging anywhere in the state.

Final sign-off from the Arkansas Legislative Council in January would have opened the door for statewide mobile wagering, possibly in time for Super Bowl betting sites for the Feb. 13 game.

In January, however, the Racing Commission held an emergency meeting for a technical change in the rule’s wording.

With this change, the item was pulled from Arkansas Legislative Council’s January meeting. Some lawmakers were concerned they would not have had time to examine the change before voting the next day.

Subcommittee Could Take up Mobile Wagering

When Arkansas legislators meet next Monday for a month-long session on state budget matters, the mobile-waging issue is expected to come up for a vote, Carlton Saffa, the chief market officer at Saracen Casino Resort in Pine Bluff, told Gambling.com.

Though an agenda item has not been posted yet, the Senate and House Administrative Rule Review Subcommittee could take up mobile wagering on Feb. 16.

If approved there, it would go to the full Joint Budget Committee for a final sign-off. Mobile wagering could begin with days of legislative approval.

51% Profit-Sharing Faces Opposition

A coalition of national online sportsbooks, including DraftKings and FanDuel, is expected to mount a challenge at the legislative session regarding part of the mobile-wagering rule.

This coalition opposes a portion of the rule granting local casinos 51% of profits in partnerships with national online betting sites. These bookmakers typically share 5-15%.

The national online bookmakers contend profit-sharing arrangements should be worked out between themselves and local casinos, not mandated by governments. No other state government sets these profit-sharing percentages.

At the legislative fiscal session, the national bookmakers might contend that the 51% provision violates the U.S. Constitution’s commerce clause, intending to prevent interstate trade barriers.

Arkansas casinos assert that most of the profits from online wagering should remain in-state since the casinos employ thousands of workers and contribute millions in state and local taxes.

Saffa dismissed the commerce clause argument, saying the Racing Commission rule doesn’t address geography and would technically treat in-state and out-of-state vendors the same.

Arkansas law stipules that a legislative committee or subcommittee can’t block a commission’s rule unless it violates a state or federal law, he said.

Casinos Get Two Skins

If mobile sports betting isn’t approved during the month-long fiscal session, the next opportunity would be at the Arkansas Legislative Council meeting in late March.

The Legislative Council doesn’t meet during a legislative session like the one that begins next week. The council’s next meeting would have to be after the fiscal session’s March 15 conclusion.

Razorbacks Headed for NCAA Tourney Bid

The NCAA men’s tournament this year could include the Arkansas Razorbacks, an SEC West team playing solidly this year, and a statewide fan-favorite likely to create betting interest.

Without mobile wagering, many people in the state can’t bet on sports without driving long distances to the nearest casino sportsbook. The University of Arkansas campus in Fayetteville is more than three hours away from the nearest legal sportsbooks inside casinos in Hot Springs or Pine Bluff.

Bettors in the eastern and southern parts of the state can drive shorter distances into Tennessee and Louisiana to place bets. Mobile wagering is legal in those states.

Republican Gov. Asa Hutchinson has said he supports mobile betting partly because it will keep Arkansas competitive with Tennessee and Louisiana.

Under the Racing Commission rule, each of Arkansas’ three casinos, and a fourth yet to be built, will receive two sports-betting skins, as mobile wagering platforms are called.

The casinos can partner with national online bookmakers or use the skins under their own brand.