Smyly, 26, asked arbitrators Elizabeth Neumeier, Andrew Strongin and Phillip LaPorte for a raise from $2.65 million to $3.75 million during a hearing Wednesday. The Rays argued for $3.2 million.
A decision is expected on Thursday.
Smyly was 5-2 with a 3.11 ERA in 12 starts last season with 77 strikeouts and 20 walks in 66⅔ innings. He started the season on the disabled list because of left shoulder tendinitis, made three starts from April 24 to May 5, then went back on the DL until Aug. 16 because of a torn labrum in the shoulder.
Fifteen additional players remain in arbitration, with hearings scheduled through Feb. 19.
Teams went 8-6 last year, the most hearings since 2001, and are 301-221 since arbitration began in 1974.