Arkansas online sports wagering tax revenue up 28.1% through October
Arkansas has collected more than $7 million in tax revenue from online sports wagering in the first 10 months of 2025, up 28.1% compared with the same period in 2024. The increase tracks with a U.S. Census report showing big gains in sports wagering tax revenue.
The state wagering info, provided by the Arkansas Department of Finance and Administration (DFA), shows that $7,229 million in tax revenue was collected from casino sports betting profits between January and October. That is up 28.1% compared with $5.643 million during the same period in 2024.
“All casino revenue in Arkansas is taxed at the same rate, whether that revenue is from slots, table games, sports betting or any other game the casino offers,” according to DFA spokesman Scott Hardin. “Casinos pay 13% in taxes on all revenue up to $150 million within a one year period. When a casino reaches $150 million within that year, the remaining revenue is taxed at 20%.”
According to state law, 55% of sports wagering tax revenue goes to the state’s general revenue fund, 17.5% is directed to the Arkansas Racing Commission Purse and Awards Fund for live racing purses at Oaklawn, 8% goes to the county in which the casino is located, and 19.5% to the city or town in which the casino is located. If a casino is not located in a city or town, the 19.5% goes to the county.
“More than 90% of all legal sports wagers in the state are now placed through the mobile apps,” Hardin said in a statement. “For example, a total of $30.4 million was wagered on site at the state’s three casinos between January 1, 2025 and October 31, 2025. In that same period, a total of $477 million was wagered on sports through the three casino mobile apps.”
Hardin said the online sports wagering mobile app requires the user to be 21 years old, and within Arkansas. The app will not accept wagers if the person is outside of state lines, he said.
According to a Dec. 10 report from the U.S. Census Bureau, the national total of state sales tax revenue from sports betting was $190 million in the third quarter of 2021, and rose 382% to $917 million in the second quarter of 2025. The third quarter of 2021 was when the bureau began collecting the data.
Sports betting became possible in May 2018 when the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act, according to the bureau.
“Since then, a majority of states have legalized some form of sports betting; including online, mobile, retail sports betting and pari-mutuels (such as wagers made on horse-racing),” the bureau noted in its report. “Sports betting is a growing industry, and the tax revenue it generates helps fund public schools, roads, highways, law enforcement and gambling addiction treatment.”
GAMBLING ISSUES
The National Council on Problem Gambling reports that online sports wagering has resulted in a rise of people with gambling addictions.
“The rate of gambling problems among sports bettors is at least twice as high as among gamblers in general,” the council noted in a 2023 report. “When sports gambling is conducted online, the rate of problems is even higher, with one study of online sports gamblers indicating that 16% met clinical criteria for gambling disorder and another 13% showed some signs of gambling problems.”
The Mayo Clinic also has issued a warning about potential addictions related to sports gambling.
“The problem with gambling is the subtle way it can take over your behavior and sensibility,” Mayo noted in this report. “This change can happen slowly or quite rapidly depending on a number of variables. However, the outcomes tend to be the same: damage to your relationships, bank accounts, credit rating, and overall mental and physical health.”