Arkansas NIL Raffle Bill Causes Division Amidst Gambling Operators

House Bill 1044, filed this month in the Arkansas legislature, could allow colleges and universities to hold fundraising raffles during sporting events. Dubbed the “Arkansas Sports Raffle Act,” this legislation seeks to provide schools with an innovative opportunity to raise funds for scholarships and Name, Image, and Likeness (NIL) compensation to student-athletes.

The New Legislation Could Solve a Long-Standing Issue

According to a recent KARK report, the proposed law would allow institutions of higher education and their affiliated nonprofits to host raffles on game days. Such a model would facilitate raising money for scholarships and NIL funds, helping colleges support student-athletes in the wake of the 2021 Supreme Court ruling that allowed them to profit from their NIL.

Representative R.J. Hawk (R-Bryant), the bill’s sponsor, stated that HB1044 is a way to modernize fundraising methods for Arkansas universities. Hawk insisted that the bill would not facilitate gambling and primarily focused on creating new revenue streams for colleges and universities, hopefully allowing promising young athletes to excel in their sport.

We keep asking the same seven or eight people for NIL [funds]. This shows different avenues for fundraising.

Representative R.J. Hawk

A key provision in the bill explicitly bans partnerships between casinos and colleges for these raffles. Rep. Hawk said the exclusion conforms to the state constitution, which restricts gambling to physical casino locations. Additionally, universities prefer managing ticket sales through their own websites rather than involving third-party platforms.

The Debate Reflects Evolving Industry Trends

Despite its good intentions, excluding gambling operators has drawn some criticism from some casino sector representatives like the Saracen Casino. Saracen chief marketing officer Carlton Saffa noted that casinos had vast experience organizing such events and would be significantly more effective at supporting athletes than colleges.

Representative Hawk’s plan prevents Arkansas casinos from using our platforms and marketing to make this NIL effort a success. We are prepared today to provide NIL 50/50 drawings to all Arkansas schools at no cost.

Carlton Saffa, Saracen Casino chief marketing officer 

Conversely, Oaklawn Racing Resort and Casino is against linking NIL to iGaming, citing its potential to harm local economies. General manager Wayne Smith expressed concerns that online gaming might reduce foot traffic to casinos and negatively impact businesses tied to that foot traffic, such as restaurants and retail stores. 

We just believe it is a bad policy to be able to put a mini-casino in the hands of every adult in the state of Arkansas.

Wayne Smith, Oaklawn Racing Resort general manager

The Raffle Act comes amid broader discussions about incorporating iGaming into Arkansas law. Saracen and Oaklawn agree that illegal gambling is prevalent in Arkansas and must be addressed. However, industry attitudes toward legalizing online gambling remain divided as some casinos feel that such a measure would only exacerbate existing issues and not provide a real solution.