Arkansas House Passes Bill Allowing Universities to Conduct Fundraising Raffles
The Arkansas House of Representatives recently passed House Bill 1634, which would allow Arkansas universities to conduct fundraising raffles at sporting events. Sponsored by Rep. RJ Hawk, the bill aims to create the Arkansas Sports Raffle Act, enabling universities to raise money for various purposes, including NIL collectives, athletic scholarships, and facility maintenance.
The bill comes after a previous attempt, House Bill 1044, failed in committee three weeks ago. The new bill addresses concerns raised during the earlier debate, such as age verification for participants and the entities allowed to conduct the raffles. The bill prohibits outside vendors, like casinos, from getting involved and requires schools to run the raffles themselves.
Despite the bill’s passage, concerns remain about potential loopholes that could lead to abuse of the system. Carlton Saffa, Chief Market Officer at Saracen Casino, raised issues regarding the bill’s compliance with Amendment 84 regulations governing nonprofit fundraisers. He argued that college athletes receiving compensation should be considered affiliated with the organization and therefore restricted from receiving raffle funds.
Attorney General Tim Griffin, however, supports the bill, stating that it provides a legal path for universities to conduct raffles in accordance with the state constitution. The bill’s emergency clause would make it effective almost immediately, potentially allowing institutions to take advantage of the legislation during the upcoming baseball season.
House Bill 1634 has passed through the House and now moves to the Senate for further consideration. The bill represents an important step in providing universities with alternative funding options for their athletic programs and NIL collectives.
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