To Establish The Arkansas Sports Raffle Act; And To Declare An Emergency.
HB1634 creates the Arkansas Sports Raffle Act, a new chapter in Title 23 that authorizes Arkansas institutions of higher education and certain affiliated nonprofit organizations to conduct raffles for charitable, philanthropic, educational, and athletics-related purposes. The bill specifically allows these raffles to be run on digital or electronic devices, online platforms, websites, or software applications, so long as they are tied to an official collegiate sporting event and limited to one raffle per game or event.
The act defines which organizations qualify, including institutions of higher education in Arkansas and affiliated nonprofit organizations that meet tax-exempt and longevity requirements. It also sets rules for ticket sales, prize disclosure, payment methods, credit card transaction caps, age verification, and the use of proceeds. Raffle receipts may be used for prizes, operating costs, technology, student-athlete scholarships or compensation, athletics support, and athletic facilities, but not to compensate persons affiliated with the organization. Unclaimed prizes revert to the institution after 120 days. The bill also directs the Department of Finance and Administration to adopt enforcement rules and declares that these raffles are governed by Arkansas Constitution, Amendment 84.
HB1634 amends the Charitable Bingo and Raffles Enabling Act to exclude qualifying higher-education raffles from its regulation and adds the Arkansas Sports Raffle Act to several alcohol-related gambling exceptions in Title 3. As a result, these raffles are not treated as prohibited gambling activity on premises covered by beer, wine, and liquor permits, and they are carved out from existing restrictions that otherwise apply to gambling and games of chance. The bill expands the legal framework for fundraising by public and private higher education institutions and their affiliated nonprofits, while creating new statutory compliance requirements for those entities and for the Department of Finance and Administration.
The overall sentiment appears strongly favorable. The bill passed both chambers by wide margins, with 79-7 in the House and 25-3 in the Senate, suggesting broad bipartisan support for allowing colleges and affiliated nonprofits to raise funds through sports-related raffles. The emergency clause also indicates legislative urgency and a belief that the measure would immediately benefit student-athletes, athletics programs, and institutional fundraising.
The main policy tension is between expanding fundraising opportunities for higher education and preserving existing gambling restrictions. Supporters frame the bill as a charitable and educational funding tool that benefits student-athletes, athletics, and campus programs, while the structure of the act shows concern about limiting abuse through age restrictions, event-based limits, disclosure rules, and a ban on third-party administration. The inclusion of online and electronic raffle methods, as well as the use of raffle proceeds for student-athlete compensation and NIL-related payments, are the most likely areas of scrutiny, though the vote totals suggest these concerns did not generate major legislative opposition.