LITTLE ROCK, Ark. – The amount of money being pumped into sports betting continues to grow in Arkansas as does tax revenue coming into the state.

Arkansas voters approved sports betting in the Natural State in 2018, and casinos began taking bets in July 2019. Mobile sports wagering became legal in the Natural State in March 2022.

According to Department of Finance and Administration spokesperson Scott Hardin, total sports book revenue through July is on track to set new records in 2023, breaking the previous year’s record. That includes figures for online sports betting, which started in Arkansas in March of 2022.

Hardin said $187 million in wagers had been placed in the state in 2022. The first seven months of 2023 saw $188.5 in wagers, which is expected to grow to $300 million as bettors engage with football season, Hardin said.

This betting has meant increased tax revenue for Arkansas. In 2022, the state collected $2.51 million from casinos in sports betting tax revenue. Through July of 2023 that number is up to $2.6 million, Hardin said.

Hardin explained that all casino revenue, regardless of source, is taxed at 13% for the first $150 million, then moves to 20% for all revenues above that amount. Taxes are paid on the revenue from wagering, not from the total wager.

He used the example of July sports wagering in Arkansas, which was $17.5 million through apps and at casinos. Of that wager amount, casinos paid $15.5 million, meaning taxes were due on the $2 million in profit.

The state also receives taxes on a bettor’s winnings. Hardin said casinos are required to report a win that is 300 times the amount wagered when it is over $600.

“In this scenario, the player receives a W2G form in the mail for the win,” Hardin stated.

The 2023 growth in state sports betting is attributed to mobile apps, Hardin said. Since Jan. 1, 85% of all sports wagers in Arkansas were made using mobile apps, with the remaining 15% placed on-site at casinos, he said.

The 2023 growth in state sports betting is attributed to mobile apps, Hardin said. Since Jan. 1, 85% of all sports wagers in Arkansas were made using mobile apps, with the remaining 15% placed on-site at casinos, he said.