It seems to be a trend almost every other week—new states getting into the sports betting industry. Next up? The Razorback State, Arkansas.
After state voters approved a constitutional amendment to make it legal in a 54-to-46 percent vote on Issue 4, which explicitly mentioned sports betting, this seems to be on its way.
Sports Betting Push Was Well Funded
Via licenses by the state, the measure will approve casino-style gambling at four locations.
The four approved are two current locations and two proposed casino locations. The current are Southland and Oaklawn and the proposed are located in Pope and Jefferson County.
Between three groups, Quapaw, Cherokee, and Delaware North, they raised $9 million to push this agenda, raising $3.7 million, $2.3 million, and $3 million, respectively.
Sports betting in Arkansas will not begin immediately. In fact, June 2019 is when state regulators need to start accepting applications for operation.
Betting Revenue for Arkansas
For tax purposes, the casinos will be taxed at 13 percent on the first $150 million, 20 percent after that. The licensing fee should not exceed $250,000, either.
Asa Hutchinson, Governor of Arkansas, did not support sports betting:
“I did not support this initiative, and I continue to have great concern over the immediate and negative impact on the state’s budget. But the people have spoken and I respect their will. Time will tell as to what this means for our state, and it remains to be seen as to whether the communities affected will consent to the gambling initiative.”
We’ll see how this goes for the state. On the surface, allowing sports betting should be good for states, but the logistics of every state are different. Will Arkansas be one of the first to illustrate the downside of what everyone believes to be such a great thing?