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Southland Casino Hotel in West Memphis and Oaklawn Sports in Hot Springs reported combined mobile sports betting losses of more than $10 million in March.
Southland partnered with DraftKings, while Oaklawn partnered with FanDuel in late February. The launches drove a surge in customer activity but resulted in short-term losses tied to promotions and heavy betting during the NCAA men’s basketball tournament.
Early launch data shows strong sports betting volume
State revenue data from the Arkansas Department of Finance and Administration shows Southland lost $6.1 million on its mobile sportsbook in March. The total amount wagered, or handle, was $1.23 million, while payouts reached $24.32 million, according to the department.
Oaklawn reported a handle of $35.7 million and payouts of $39.9 million, resulting in a loss of about $4.2 million, according to the same report.
In sports betting, operators typically retain a percentage of wagers known as the “hold.” Losses can occur when payouts exceed wagers or when promotional spending — such as bonus bets and free-play offers — outweighs revenue.
Both casinos had previously operated their own online sportsbooks before entering partnerships with national operators. By comparison, Saracen Casino in Pine Bluff, which continues to run its own platform, reported a handle of $32.6 million and a loss of $2.15 million in March, according to the Arkansas Department of Finance and Administration.
Carlton Saffa, Saracen’s chief marketing officer, said the casino has taken a more conservative approach to promotions. “We’re not willing to spend millions of dollars in bonuses to chase growth,” he said, as reported by Axios.
Promotions and early acquisition drive initial results
Industry analysts say such losses are common during the early stages of sportsbook launches, when operators invest heavily in promotions to acquire customers.
Robert W. Powell III, a hospitality lecturer at the University of Arkansas, told the Arkansas Democrat-Gazette that betting activity was amplified by March Madness, particularly the University of Arkansas Razorbacks’ tournament run.
Bonuses and promotions from national sportsbooks also contributed to increased wagering, according to Axios.
DraftKings and FanDuel launched in Arkansas on March 20, leaving just 11 days of data in the reporting period. As a result, March figures may not reflect normalized performance.
Arkansas casino performance holds steady
Despite sportsbook losses, Arkansas’ three casinos remained profitable overall. Combined net casino revenue reached $185.66 million in March, up 1% from a year earlier, according to the Arkansas Department of Finance and Administration. The casinos paid $30.62 million in taxes, a 3% increase year over year, according to the department.
The contrast highlights a key industry dynamic: sportsbooks are often used as customer acquisition tools that support broader casino operations, even when they operate at a short-term loss.
Southland Casino President and General Manager Osi Imomoh said the property remains focused on long-term growth and has seen strong early player activity following its partnership with DraftKings.
