Arkansas Sports Betting Operator Wants Online Casinos

One Arkansas sports betting operator is pushing for the state to add online casino legalization to their gaming portfolio.

Carlton Saffa, the CMO of Saracen Casino Resort, recently spoke with Pat Evans of Legal Sports Report. During their conversation, he indicated a desire to pitch the Arkansas Racing Commission, which oversees sports betting in Arkansas, on the merits of online casino legalization. The crux of his argument rests on safety. Saffa believes that having a regulated Arkansas online casino market is better than disallowing it, which invariably compels residents to flock toward offshore betting sites not regulated by the U.S. government.

This logic makes sense. It is the exact argument many policymakers have used to push the legalization of sports betting in the United States. From the outside looking in, it also appears to jibe with The Land of Opportunity’s current gaming setup. Arkansas sports betting launched back in 2021 and added online sports betting to the portfolio by the end of 2022. And given that the state has four casinos in operation, why not permit them the ability to tap into the online market?

Yet, opposition to Arkansas online casinos is pretty profuse at the moment. That is…interesting. It would be one thing if Arkansas online sports betting weren’t legal. But it is legal.

So, what is the genesis of the prevailing opposition? Can Saffa’s pitch sway lawmakers into changing their tune? And, oh yeah, what exactly is his pitch? Let’s get into it.

Details of Arkansas Online Casino Legalization Pitch

Evans is kind enough to unpack the meat and potatoes of the Arkansas online casino proposal:

“Saffa first sent an online casino memo to the ARC in March, asking it to consider online casino legalization. He argued illegal online casinos are rampant in the state and cited American Gaming Association data that Arkansans illegally wager up to $5 billion annually. ‘My message is not a question of whether or not we want online gaming in Arkansas; we’ve had it for some time. The question is, do we want to admit it is here and regulate and tax it, or pretend it’s not happening?’ Saffa said. ‘I believe you should pull weeds when they’re small. They’re easier to pull out of the ground. Every day we wait, illegal casinos will only grow, and we’re already talking about juggernauts.’ Saffa said online casino legalization can follow the same path as online Arkansas sports betting, which the state legalized in 2022. He said there is direct constitutional permission for gambling, and regulators can alter the rules to include online casinos.”

The framing from Saffa aligns with the approach Arkansas sports betting regulators continue to take elsewhere. Earlier this year, in fact, Arkansas sent cease and desist letters to daily fantasy sites, citing the belief that their games constitute unlicensed sports wagering.

Introducing online casinos follows a similar ideology. Arkansas sports betting regulators have so far acted in a manner to regulate (and thus tax) everything. The concept of them letting money walk out the door into illegal online casinos is actually kind of baffling. Especially if state residents are really gambling $5 billion per year outside the market.

Opponents Do Not Believe Online Casinos Should Follow in the Footsteps of Arkansas Sports Betting

Of course, every measure has its fair share of opponents. The Arkansas online casino bill is no different. Consider the following from Evans:

“Oaklawn Racing Casino Resort General Manager Wayne Smith told the Arkansas Democrat-Gazette that Oaklawn opposes online casino legalization. Oaklawn, which does offer online horse racing and sports betting, did not respond to a request for comment. The Department of Finance and Administration released a statement that an expansion is not as simple as a rule change but that it is open to working with gambling industry stakeholders to address illegal operators, according to THV 11.”

Gaming operators that offer sports betting and horse betting but will not be in a position to host online casinos in Arkansas obviously have a vested interest in opposing Saffa’s initiative. Customers may gravitate towards Arkansas sports betting operators who offer both online sports wagering and casino apps. If racetracks and other operators do not offer the latter, they could see their share of the Arkansas sports betting market decline.

That pitfall feels like the root of the Department of Finance and Administration’s stance. Given past actions, they no doubt want to regulate as much gambling in Arkansas as possible. Their challenge is convincing other stakeholders without online casinos that they will not suffer as a result.

The Arkansas Online Casino Initiative Could Get Complicated

Supporters of online casinos in Arkansas will not see too much validity in Oaklawn Racing Casino Resort’s argument. The latter gets to offer online horse racing betting in Arkansas even though other casinos do not carry that.

More pointedly, supporters will also argue the concern over market share is overstated. All major sportsbook companies in the United States have elected to remain outside Arkansas. The cost of admission, they say, is too high. As it stands, outside operators would have to give 51 percent of their profits to Arkansas casinos. This can fly when it comes to sports betting in New York or sports betting in Ohio. But as the 33rd most populated state out of 50, Arkansas does not have that kind of market leverage.

This is all to say: Sportsbooks, casinos and racetracks are not competing against industry heavyweights. They are competing against each other. And with fewer than five options from which Arkansas residents can choose, the dangers of oversaturation are virtually nil.

On the flip side, a smaller market theoretically makes it easier to create a monopoly for one operator. Is this what the legalization of Arkansas online casinos would do? Or is it a threat that will prevent Saffa’s bill from getting off the ground? It seems like we will find out during the first half of 2025.

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