Arkansas’ tourism economy put at risk by prediction markets

When people think about Arkansas, they picture our mountains, our trails, our music, and our world-class hospitality. Tourism is a cornerstone of our economy, supporting more than 70,000 jobs and sustaining restaurants, hotels, and communities in every corner of the state. In recent years, one major contributor to that success has been a modern, well-regulated gaming industry that drives visitors, tax revenue, and local investment, all under the rules set by the Arkansas Racing and Gaming Commission.

Arkansas casinos have been true gamechangers for the communities they call home. A stroll through downtown Hot Springs says it all with vibrant hotels, busy restaurants, and visitors arriving from every corner of the world. West Memphis is seeing a fresh wave of energy as visitor traffic and commercial activity continue to rise. In Pine Bluff, more than half a billion dollars in recent investment has been the catalyst for major capital projects, state of the art facilities and significant job growth for the area. The impact is clear: more jobs for Arkansans, more doors opening for entrepreneurs, and more revenue to support schools, infrastructure, and essential city services statewide.

This is what a legitimate, regulated gaming industry looks like. And that’s exactly why the rapid expansion of so-called “prediction markets” is incredibly concerning.

These online platforms market themselves as “financial exchanges,” but in reality, they offer sports betting without meeting the standards every Arkansas-licensed operator must meet. They also do not contribute any tax revenues back to communities like our legal gaming industry are required to do. More notably, while our state gaming industry collectively employs thousands of Arkansans, these “prediction markets” offer no local employment opportunities.

These platforms are sports betting dressed up as finance. If you’re placing a cash wager on the outcome of a game, you are making a sports bet, even if the website calls it a “contract” or a “market”. And they’re not even hiding it, either. They are openly advertising these products as “legal sports betting in all 50 states”.

The difference is simple. Arkansas’ casinos and sportsbooks are licensed, taxed, held accountable, and required to invest in the state. These prediction platforms are not. They operate outside Arkansas law and outside the state-imposed framework designed to protect consumers, support our economy, and ensure fair play. They want Arkansas players without Arkansas obligations. And if left unchecked, they could unravel the tourism momentum that local leaders and businesses have spent years building for our gaming industry.

States like ours did not authorize sports wagering just to see unregulated online platforms undercut our regulatory framework and redirect funds away from Arkansas communities. If you want to take bets in this state, you should meet the same standards as everyone else. Arkansas’ attorney general recently made that clear, stating plainly that prediction markets offering sports bets are in violation of Arkansas law.

The federal agency these platforms fall under is the Commodity Futures Trading Commission which exists to oversee commodity markets like oil and wheat, not sportsbooks. Arkansas has a Gaming Commission for a reason: our state has the right and responsibility to determine what gaming looks like within our borders. We should not be forced into a system where federal regulators, or private investors, decide those rules for us.

Tourism is a competitive industry. Every state wants visitors, business travel, and investment. Arkansas has earned its place on the map through smart policy, local control, and a focus on building destinations that reflect our values. We should not let out-of-state firms bypass our laws and strip away the economic benefits our communities have worked so hard to secure.

The Arkansas Hospitality Association will continue advocating for an environment where businesses succeed because they play by the rules, not because they find ways around them. We welcome innovation, but not at the expense of jobs, tax revenue, and the integrity of our gaming industry.

Arkansas made thoughtful decisions to bring regulated gaming here. It has strengthened our state, and it deserves to be protected. If someone wants to enter this market, they’re welcome to, as long as they follow Arkansas’ laws and contribute to Arkansas’ future, just like everyone else.

Editor’s note: Alicia Payseno is the new CEO of the Arkansas Hospitality Association. The opinions expressed are those of the author.