Electronic Games of Skill – Arkansas Department of Finance and Administration (2024)

An 18% privilege tax is levied on the net wagering revenues from electronic games of skill. The fees are to be collected by the horse racing and greyhound racing franchisees. The fees are due on or before the 20th day of each month following the report month.

Definitions:

• Electronic Games of Skill means games played through any electronic device or machine that affords an opportunity for the exercise of skill or judgment where the outcome is not completely controlled by chance alone. A game is not completely controlled by chance alone if the betting public may attain through the exercise of skill or judgment a better measure of success in playing the game than could be mathematically expected on the basis of pure luck, that is, on the basis of pure random chance alone.
• Electronic Games of Skill do not include pari-mutuel wagering on horse racing and greyhound racing governed by the Arkansas Horse Racing Law or Arkansas Greyhound Racing Law, whether pari-mutuel wagering on live racing, simulcast racing, or races conducted in the past and rebroadcast by electronic means.
• Net Wagering Revenues from Electronic Games of Skill means the gross wagering revenues received by a franchise holder from wagers placed by patrons on electronic games of skill, less amounts paid out or separately reserved under rules of the commission for future pay out, to patrons on the wagers

Applicable statutes: AR Code Ann. §23-113-101 et seq. (Local Option Horse Racing and Greyhound Racing Electronic Games of Skill Act)

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