Arkansas’s Gambling Laws: Past, Present and Future
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Previously known as one of the most popular gambling destinations throughout the United States, Arkansas is a state that gamblers today tend to avoid. This boycott is due to the state’s strict and often outdated gambling laws.
Opened in 1905, Oaklawn was the first venue that could be classified as a casino. It offered racing and a few gaming machines and was titled a ‘racino’ because it allowed people to gamble and place bets on racing.
The success of the casino spurred the establishment of many others, and gambling grew steadily in popularity amongst locals and visitors from other states. However, the growth of the industry was not meant to last.
In 1910, mass action by lawmakers throughout the US saw the prohibition of gambling in the country as a whole. Included in this banishment were race betting and any other form of gambling that was classified as the exchange of money as a wager against odds for the hope of a return of a higher sum.
Due to the outcry of the working public, by 1931, many states had requested the legalization of race betting. For Arkansas, this took longer to be accepted by lawmakers, and only in 1935 was Act 46 signed off by Governor Junius Futrell. This act allowed betting on horse and greyhound racing.
After horse and dog race wagers were allowed, many other forms of gambling began to surface that flew in the face of the law. As such, a crackdown was implemented, and by 1967, no casinos were open anywhere in the state. The only form of gambling available was raceway betting.
The dreary laws regarding gambling in the state remained for many years until 2005, when the Local Option Horse Racing and Greyhound Racing Electronic Games of Skill Act was passed. Under this act, racinos were again legalized, and racing grounds were allowed to offer electronic gaming machines that allowed real-money gambling.
Many citizens rejoiced because they were again free to wager on activities other than races. However, many still yearned for the type of table games that were accessible in other states.
Sadly, while the Act of 2005 allowed electronic gambling machines to return, it made no provision for table games or other gambling opportunities. Therefore, racinos stayed clear of such offerings.
Nothing changed in the state until May 2018, when the Supreme Court overruled a federal law from 1992 that prohibited states from participating in sports betting. Instead of being a national rule, the court left it to individual states to decide whether the gambling opportunity should be legalized.
November of the same year saw Arkansas voters poll in favor of gambling, and it was officially approved under Amendment 100 that full casinos and sports betting would be allowed in the state. Four physical sites were identified: West Memphis, Hot Springs, Pine Bluff, and Russellville.
Soon after Amendment 100 was ratified, the West Memphis and Hot Springs racinos began expansions to offer a full gambling complement that included casino table games and other betting options.
The West Memphis location also began expansion plans. However, residents near Russellville, which forms part of Pope County, voted against casino operations in the county, so the casino’s establishment was put on hold.
With the advent of online slots and casinos, the laws surrounding gambling in the state were again brought under review in 2021. During this time, the request was made for the state to legalize online gambling and sports betting.
Taking all factors into consideration, including a recent lawsuit regarding the protection of players who may suffer from gambling addiction, the Arkansas Racing Commission amended the law to allow for only the legalization of online sports betting. The new law was put into practice in early 2022.
Under the new law, physical casinos located within state lines can legally offer sports betting. However, all other forms of online casino play (including slots) are assumed prohibited since they are not explicitly mentioned within the law.
Due to this loophole within the law terminology, various online casinos have begun to operate in the state. By the end of 2022, there were no prosecutions against any player for using these casinos or for wagering money online in a format other than sports betting.
Many believe this means that online casinos and gambling are legalized in the state. However, under Title Five, Chapter 66 of the Arkansas Code, gambling online is strictly prohibited. Therefore, players are advised not to use online casinos, even if they allow registration from within the state.
Amazingly, there have not been many calls to legalize and regulate online casinos. To date, no changes are being tabled that would allow for this. Despite this, players in the state remain hopeful that an amendment to local law will be established to extend to players the convenience that online casinos offer.
Adding to the pressure of accepting such an amendment by policymakers is the uptake of online gambling legalization by many other states. Changes to laws in these states have seen the adoption of sports betting, online casinos, and online lottery ticket purchases.
Regardless of what other states are doing, Arkansas seems set in the laws that have already been established. Therefore, it could be years or even decades before changes are made to legislation that opens the market for online casinos.
Because of this, gamblers in Arkansas will need to keep visiting their preferred physical casino. Doing this, at least for now, is safer than playing at online casinos that breach local laws and could get players in trouble.
