Pros and Cons of Arkansas Gambling License
Running a gambling operation in Arkansas comes with both opportunities and responsibilities. Below is a summary of the key benefits and challenges of obtaining a gambling license in the state.
Pros and Cons Table

License holders also have an annual obligation to contribute $200,000 to gambling addiction programs. While this adds to costs, it promotes responsible gambling and enhances the operator's reputation.
Arkansas's tax system is designed to help businesses grow during their initial phase while remaining profitable. Additionally, the limited number of licenses creates a competitive advantage, though it also means stricter oversight and operational demands.
For businesses looking to enter Arkansas's gambling market, success depends on having strong financial backing and a commitment to meeting regulatory standards. Carefully evaluating these pros and cons is critical to navigating the state's regulated gambling environment effectively.
How to Apply for Arkansas Gambling License
Preparation Before Applying
Before starting the application process, make sure you’ve gathered all the required documents mentioned in the 'Requirements' section. These must meet the standards set by the Arkansas Racing Commission. It’s a good idea to consult legal experts to ensure everything is in order and complies with the regulations.
Application Submission
When submitting your application, you’ll need to address several key components:
Component |
Requirements |
Notes |
Application Form |
Official form from Arkansas Racing Commission |
Must be filled out completely |
Initial Fees |
$250,000 application fee [4] |
Payment required at submission |
Supporting Documents |
All necessary documents from the Requirements section |
Must be up-to-date and certified |
Merit Criteria |
Experience, financial stability, and operational plans |
Reviewed by the Commission |
Review and Approval
The Arkansas Racing Commission follows a thorough review process to evaluate applications:
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Initial Assessment
The Commission checks all submitted documents for accuracy and completeness, ensuring the applicant has the required casino gaming experience and financial stability.
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Background Investigation
A detailed background check is conducted as part of the review, focusing on the applicant's history and compliance with regulatory requirements.
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Final Evaluation
Applications are assessed based on the applicant’s experience, financial health, and operational plans. Common delays occur due to missing documents or insufficient financial evidence.
Successful applicants will operate under Arkansas's tax structure for casino gaming:
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13% on the first $150,000,000 in net receipts
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20% on receipts over $150,000,001 [1]
Since Arkansas only allows four casino licenses under the Casino Gaming Amendment of 2018 [1][5], the competition is intense. Once you’re approved, you can decide whether a B2C or B2B license fits your business model better.
B2C and B2B Gambling Licenses in Arkansas
Differences Between B2C and B2B Licenses
Arkansas offers two primary types of gambling licenses, each serving a distinct purpose. B2C licenses are for businesses that directly provide gambling services to customers, such as casinos and sports betting platforms. On the other hand, B2B licenses cater to companies that supply the infrastructure - like software, equipment, and payment systems - to support licensed operators.
License Type |
Purpose |
Audience |
B2C License |
Running casinos, sports betting, and gaming facilities |
End users |
B2B License |
Providing infrastructure, software, and technical services |
Licensed operators |
Both license types are regulated by the Arkansas Racing Commission, which ensures adherence to state laws and acknowledges the unique operational needs of each.
Requirements for B2C and B2B Licenses
Under Amendment 100 of the Arkansas Constitution, the requirements for these licenses differ significantly. Here's a breakdown:
Requirement Type |
B2C License |
B2B License |
Financial and Operational Standards |
High capital, detailed business plans for casinos and hotels |
Moderate financial needs, service documentation |
Compliance Checks |
Stringent background checks for individuals and corporations |
Focus on corporate compliance |
Technical Expertise |
Proficiency in managing gaming operations |
Advanced tech infrastructure and security systems |
Location and Staffing |
Restricted to designated areas, extensive staffing requirements |
Flexible location, emphasis on tech skills |
For B2B providers, additional expectations include:
-
Expertise in gambling-related technology and services
-
Adherence to Arkansas's regulatory standards
-
Reliable service performance
-
Seamless integration with licensed operators
When evaluating B2B applications, the Arkansas Racing Commission prioritizes:
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Quality of software and equipment
-
Strength of security measures
-
Data protection protocols
-
Availability of technical support
"Obtaining a B2B gambling license ensures that your business is regulated by an authority with clear compliance rules; this makes your operation more in line with international requirements." - Diane, partner of GFLO Consultancy.
Knowing the specific requirements for B2C and B2B licenses is essential for businesses planning to operate or renew their licenses in Arkansas, ensuring they remain in compliance with state regulations.
Renewing Arkansas Gambling License
Renewal Timeline and Documents
In Arkansas, gambling licenses need to be renewed every 10 years. Operators must file their renewal applications well in advance, as the Arkansas Racing Commission enforces a strict 10-day processing period for submissions that meet all requirements. To renew, operators must provide several key documents, each subject to thorough verification through audits and regulatory checks.
Document Type |
Description |
Verification Method |
Background Checks |
Criminal history updates |
State and federal databases |
Financial Records |
Current financial statements, solvency proof |
Independent auditor review |
Compliance History |
Past adherence to regulations |
Racing Commission assessment |
Operational Reports |
Gaming activity and revenue details |
Internal audit verification |
Renewal Costs
The Arkansas Racing Commission caps the renewal fee at $10,000, which is a reasonable expense for established operators.
Other potential expenses include:
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Preparing and verifying required documents
-
Upgrading systems
-
Conducting compliance audits
-
Professional service fees
The Commission is also inviting public feedback on proposed rule changes for casino gaming license renewals. Comments will be accepted until March 8, 2024.
Staying on top of the renewal process is essential for operators to remain compliant and avoid any interruptions in their operations within Arkansas's regulated gambling market.
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