NIL Collective in Arkansas Looks to Gambling for Fundraising Boost

Across the United States, college sports are funded by the so-called NIL collectives. Usually, such collectives consist of independent organizations that help raise money for universities and athletes in particular, enabling them to benefit based on their performance.

Yet, college sports do not have a player’s union which is why they lack a safe path to a salary cap. This creates a need for constant fundraising and pushes colleges into exploring different ways to secure those funds.

In one such initiative, the University of Arkansas’ NIL Collective, Arkansas Edge, seeks to secure additional funding through the organization of a 50/50 raffle. The collective recently joined forces with Saracen Resort, a popular casino.

Ultimately, the collaboration seeks to bring the 50/50 raffle for Razorback fans that will benefit the NIL collective. Raffles are not uncommon and are usually organized in a way that benefits only two sides: the winner of the raffle and an organization that is usually involved in charitable activities.

Under the agreement with Saracen Resort, Arkansas Edge seeks to utilize the casino’s ability for online ticket sales. Undoubtedly, this method will help more fans participate in the raffle that will benefit the NIL collective and boost the funding for college athletes.

The Plan May Be Difficult to Accomplish

But why is additional funding important for Arkansas Edge? Further support for the NIL Collective is expected to benefit the athletes. Currently, Arkansas Edge has “pay-for-play” agreements with the athletes which are based on their abilities and performance.

With the NIL Collective securing additional funds, the University will be able to search for new talent. At the same time, extra resources will help retain athletes.

While Saracen Casino and Arkansas Edge’s plan sounds simple, it may be difficult to accomplish. This is because the state has strict rules when it comes to the organization of a raffle. Under Arkansas’ Charitable Bingo and Raffles Act, an organization can hold a raffle after holding a charity status for five years.

It was back in 2023 when Arkansas Edge was established, which means that is far from meeting this criterion. What’s more, the NIL Collective isn’t recognized as an organization with a charitable purpose.

This puts Arkansas Edge’s proposal in a difficult position as one way to accomplish its goals would be through changes to the current laws.

On the other hand, an option that is considered by the NIL Collective is to recognize the raffle as a “NIL drawing game.” This way, Arkansas Edge may be able to ensure compliance with the regulations while also benefiting from additional funding.