Bill Summary – FastDemocracy

Stricken language would be deleted from and underlined language would be added to present law.
 State of Arkansas
 95th General Assembly                           A Bill
 Regular Session, 2025                                                                HOUSE BILL 1044
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 By: Representatives Hawk, Achor, Duffield, Brooks, Maddox, Ray, L. Johnson
 By: Senators J. Dismang, J. Boyd, M. McKee
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                                     For An Act To Be Entitled
                     AN ACT TO AMEND THE LAW REGARDING RAFFLES; TO PROVIDE
                     THAT THE CHARITABLE BINGO AND RAFFLES ENABLING ACT
                     DOES NOT REGULATE CERTAIN RAFFLES CONDUCTED BY
                     INSTITUTIONS OF HIGHER EDUCATION OR AFFILIATED
                     NONPROFIT ORGANIZATIONS; TO ESTABLISH THE ARKANSAS
                     SPORTS RAFFLE ACT; TO AMEND THE LAW REGARDING
                     ALCOHOLIC BEVERAGES TO ADD THE ARKANSAS SPORTS RAFFLE
                     ACT AS AN EXCEPTION TO VARIOUS PROHIBITED PRACTICES;
                     TO DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.
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                                                  Subtitle
                           TO ESTABLISH THE ARKANSAS SPORTS RAFFLE
                           ACT; AND TO DECLARE AN EMERGENCY.
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 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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         SECTION 1.         Arkansas Code § 23-114-103(c), concerning general
 provisions under the Charitable Bingo and Raffles Enabling Act, is amended to
 read as follows:
         (c)(1)        The provisions of this chapter are not intended and shall not
 be construed to allow the play of games of bingo or raffles through any
 electronic device or machine.
                     (2)   This chapter shall not regulate, limit, or prohibit an
 institution of higher education or its affiliated nonprofit organization from
 conducting raffles for charitable, philanthropic, or educational purposes in
 accordance with the Arkansas Sports Raffle Act, § 23-120-101 et seq.
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      SECTION 2.    Arkansas Code Title 23 is amended to add an additional
 chapter to read as follows:
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                                     CHAPTER 120
                              ARKANSAS SPORTS RAFFLE ACT
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      23-120-101.    Title.
      This chapter shall be known and may be cited as the "Arkansas Sports
 Raffle Act".
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      23-120-102.    Legislative findings.
      The General Assembly finds that:
            (1)    It is in the public interest for an institution of higher
 education and its affiliated nonprofit organizations to conduct raffles for
 educational, charitable, or philanthropic purposes; and
            (2)    The use of raffle funds by an institution of higher
 education and its affiliated nonprofit organizations for the purposes
 provided in this chapter will support philanthropic purposes by:
                    (A)   Raising the public image of the institution of higher
 education, which will attract more student-athletes and other students to the
 institution of higher education's educational programs;
                    (B)   Supporting student-athletes and providing financial
 resources to advance the educational endeavors of the student-athletes; and
                    (C)   Increasing the exposure of the institution of higher
 education to the public, which will attract additional financial support for
 academic programs at the institution of higher education.
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      23-120-103.    Definitions.
      As used in this chapter:
            (1)    “Affiliated nonprofit organization” means an organization
 established by or an authorized affiliate of an institution of higher
 education within the State of Arkansas that:
                    (A)   Was created for the purpose of raising funds for the
 institution of higher education’s collegiate athletic program;
                    (B)   Has been approved for tax-exempt status under the
 Internal Revenue Code, 26 U.S.C. § 501(c)(3), as in effect on January 1,
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 2025; and
                     (C)   Has been in continuing existence as a nonprofit tax-
 exempt organization in the State of Arkansas at least five (5) years
 immediately prior to conducting a raffle;
             (2)   “Qualifying organization” means an institution of higher
 education within the State of Arkansas or an affiliated nonprofit
 organization; and
             (3)   “Raffle” means the selling of tickets or chances to win a
 prize awarded through a random drawing.
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      23-120-104.     Conducting raffles.
      (a)    A qualifying organization is authorized to conduct a raffle under
 this chapter.
      (b)    A raffle conducted by a qualifying organization under this
 chapter:
             (1)   May be conducted on:
                     (A)   A digital or electronic device;
                     (B)   An online platform, website, or software application;
 or
                     (C)   Any premises owned, leased, or otherwise utilized by a
 qualifying organization; and
             (2)   Shall be:
                     (A)   Based on an official game or sporting event between a
 qualifying organization's collegiate athletic team and an opposing
 institution of higher education's collegiate athletic team; and
                     (B)   Limited to one (1) raffle per official game or
 sporting event.
      (c)    A qualifying organization conducting a raffle under this chapter:
             (1)   May determine what method of payment the qualifying
 organization will accept in exchange for a raffle ticket;
             (2)   Shall designate the prize amount or division of receipts of
 a raffle; and
             (3)   Shall publicly announce the prize amount or division of
 receipts of a raffle prior to the sale of the raffle ticket.
      (d)    A qualifying organization may utilize receipts from the raffle for
 the following purposes:
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              (1)   Payment of prizes designated for the raffle;
              (2)   Payment of administrative costs, fees, or expenses to
 operate, conduct, advertise, and promote the raffle under this section;
              (3)   Purchase of software, technology, supplies, or equipment to
 operate, conduct, advertise, and promote the raffle under this section;
              (4)   Provision of scholarships, financial aid, stipends, or other
 compensation to a student-athlete attending the institution of higher
 education;
              (5)   Compensation of a student-athlete for the commercial use of
 his or her publicity rights in accordance with the Arkansas Student-Athlete
 Publicity Rights Act, § 4-75-1301 et seq.;
              (6)   General support of the institution of higher education’s
 athletics teams or programs; and
              (7)   Purchase, maintenance, repair, debt service, or construction
 of the institution of higher education’s collegiate athletic property,
 facilities, or equipment.
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      23-120-105.     Limitation on use of funds.
      Receipts from a raffle shall not be used to compensate a person who
 works for or is affiliated with the qualifying organization that conducts the
 raffle.
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      23-120-106.     Unclaimed raffle prizes.
      A raffle prize that is unclaimed by a winner within one hundred twenty
 (120) days of the raffle shall be retained by the institution of higher
 education for which the raffle was conducted.
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      23-120-107.     Restrictions.
      (a)     A person under eighteen (18) years of age shall not purchase a
 raffle ticket.
      (b)     A casino licensee or an agent of a casino licensee shall not act
 as a third-party operator or otherwise administer a raffle on behalf of the
 qualifying organization.
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      SECTION 3.     Arkansas Code § 3-4-403(19)(B), concerning the exception
 from the Class A permit violation for conducting or permitting gambling on
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 premises with an alcoholic beverage permit, is amended to read as follows:
                   (B)   Conducting or permitting gambling under subdivision
 (19)(A) of this section does not include:
                          (i)     Charitable bingo and raffles under the
 Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
                          (ii)    A lottery under the Arkansas Scholarship
 Lottery Act, § 23-115-101 et seq.; or
                          (iii)    A raffle conducted under the Arkansas Sports
 Raffle Act, § 23-120-101 et seq.;
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      SECTION 4.   Arkansas Code § 3-5-221(d)(1)(A)(ii), concerning exceptions
 to the crime of gambling on the premises of a holder of a beer and light wine
 license, is amended to read as follows:
                          (ii)    Forms of gambling under subdivision
 (d)(1)(A)(i) of this section do not include:
                                  (a)   Charitable bingo and raffles under the
 Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
                                  (b)   A lottery under the Arkansas Scholarship
 Lottery Act, § 23-115-101 et seq.; or
                                  (c)   A raffle conducted under the Arkansas
 Sports Raffle Act, § 23-120-101 et seq.;
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      SECTION 5.   Arkansas Code § 3-5-307(5)(B), concerning exceptions to
 prohibited practices related to gambling on the premises of a holder of a
 beer retailer license, is amended to read as follows:
                   (B)   Permitting gambling or games of chance under
 subdivision (5)(A) of this section does not include:
                          (i)     Charitable bingo and raffles under the
 Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
                          (ii)    A lottery under the Arkansas Scholarship
 Lottery Act, § 23-115-101 et seq.; or
                          (iii)    A raffle conducted under the Arkansas Sports
 Raffle Act, § 23-120-101 et seq.;
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      SECTION 6.   Arkansas Code § 3-9-236(15)(C), concerning exceptions to
 the crime of allowing gambling on the premises of a holder of a permit for
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 on-premises consumption of alcohol, is amended to read as follows:
                   (C)   A gambling or a gaming device, machine, or apparatus
 under subdivision (15)(A) of this section does not include:
                          (i)     Charitable bingo and raffles under the
 Charitable Bingo and Raffles Enabling Act, § 23-114-101 et seq.; or
                          (ii)    A lottery under the Arkansas Scholarship
 Lottery Act, § 23-115-101 et seq.; or
                          (iii)    A raffle conducted under the Arkansas Sports
 Raffle Act, § 23-120-101 et seq.;
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      SECTION 7.    EMERGENCY CLAUSE.     It is found and determined by the
 General Assembly of the State of Arkansas that institutions of higher
 education and their affiliated nonprofit organizations are intertwined with
 economic development, the education of student-athletes, commerce, and other
 governmental interests that otherwise impact the State of Arkansas; that the
 current prohibitions on institutions of higher education and their affiliated
 nonprofit organizations from conducting raffles for educational, charitable,
 or philanthropic purposes hinder institutions of higher education and their
 student-athletes, which thereby hinder economic development, education, and
 commerce in the State of Arkansas; and that this act is immediately necessary
 to ensure that institutions of higher education and their affiliated
 nonprofit organizations can financially support their student-athletes and
 athletic programs, which will bolster economic development, education, and
 commerce in the State of Arkansas. Therefore, an emergency is declared to
 exist, and this act being immediately necessary for the preservation of the
 public peace, health, and safety shall become effective on:
            (1)    The date of its approval by the Governor;
            (2)    If the bill is neither approved nor vetoed by the Governor,
 the expiration of the period of time during which the Governor may veto the
 bill; or
            (3)    If the bill is vetoed by the Governor and the veto is
 overridden, the date the last house overrides the veto.
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Statutes affected: 
HB 1044: 23-114-103(c), 3-4-403(19), 3-5-221(d), 3-5-307(5), 3-9-236(15)