HB1044
To Establish The Arkansas Sports Raffle Act; And To Declare An Emergency.
Last Action (May 5, 2025): Died in House Committee at Sine Die adjournment.
Sponsors
AI-Generated Summary
This bill establishes the 'Arkansas Sports Raffle Act,' which authorizes institutions of higher education and their affiliated tax-exempt nonprofit organizations to conduct raffles associated with collegiate athletic events. These raffles may be held through digital, online, or physical means, limited to one per athletic event. Proceeds may be used for various purposes, including scholarships, student-athlete compensation for publicity rights, athletic program support, and facility construction or maintenance. The bill explicitly exempts these raffles from the regulations of the Charitable Bingo and Raffles Enabling Act and creates exceptions to state laws prohibiting gambling on premises licensed to sell alcoholic beverages. It also imposes a $250 transaction cap for credit card payments and restricts raffle participation to individuals aged 18 and older. Additionally, the act prohibits casino licensees from acting as third-party operators for these raffles. The bill includes an emergency clause to make these provisions effective immediately upon passage.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries include public and private institutions of higher education in Arkansas and their affiliated nonprofit organizations, which gain a new revenue stream for academic and athletic programs. Additionally, student-athletes at these institutions benefit through increased funding for scholarships, stipends, and compensation for their publicity rights. The university athletic departments also benefit from enhanced resources for facility maintenance and general operations.
Who Might Suffer?
Entities that might be negatively impacted include traditional charitable organizations that rely on existing bingo and raffle regulations, as they now face a different regulatory landscape for sports-related fundraising. Additionally, those concerned with the expansion of gambling accessibility within the state, particularly on premises serving alcohol, may view this as a negative development. Furthermore, while not directly harmed, casino licensees are explicitly restricted from acting as third-party operators for these raffles, potentially limiting their business opportunities in this specific sector.
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