Arkansas Edge, the University of Arkansas’ primary name, image, likeness (NIL) collective, is seeking to operate an online 50/50 raffle with the potential to raise millions of dollars for the Razorbacks’ athletic programs. This initiative aims to lure top-tier talent to the university’s teams. However, state officials are uncertain about the legality of such an online operation under current regulations.
The collective has submitted a request to the Arkansas Racing Commission (ARC) to amend existing rules, enabling electronic 50/50 raffles. Operating this online venture would be financially demanding. GeoComply or a similar geolocation technology service provider would be needed to ensure that only individuals physically within Arkansas can participate. Additionally, there would be requirements for “know your customer” (KYC) verifications.
To mitigate these costs and maximize funds for NIL sponsorships, Saracen Casino Resort in Pine Bluff has offered its Bet Saracen Sportsbook platform for the initiative. Saracen Casino, operated by the Quapaw Tribe of Oklahoma, already employs the necessary geofencing technology and KYC protocols to facilitate online sports betting for Arkansas residents aged 21 and older.
Saracen representatives argue that if Arkansas permits an online raffle to support the Razorbacks’ NIL program, the state should also consider legalizing iGaming—online slot machines and interactive table games. They have proposed regulatory amendments to ARC’s online sports betting rules to accommodate both raffles and iGaming. This suggested alteration includes redefining “interactive gaming” to encompass “a NIL drawing game conducted through an electronic device or machine to benefit a Name, Image, Likeness collective consistent with the Arkansas Student-Athlete Publicity Rights Act.”
Carlton Saffa, Chief Marketing Officer at Saracen, commented, “We would have an innovative NIL fundraising strategy that no state has.” Saffa, a University of Arkansas alumnus, emphasized his dedication to the institution, stating, “My wife graduated from the University of Arkansas. My children have no choice. They will attend the University of Arkansas. This is where we need to be focusing.”
Saffa also noted that authorizing interactive gaming at the state’s three brick-and-mortar casinos could curb the influence of illegal, offshore websites and apps that target players in states where iGaming is prohibited.
Despite the proposal’s potential benefits, it faces significant challenges. The state’s Charitable Bingo and Raffles Act mandates that bingo games and raffles be associated with charitable organizations recognized by the state for at least five years, and Arkansas Edge is not a 503(c)(3) charitable entity. To navigate this obstacle, the language of the proposal refers to the online 50/50 raffle as a “NIL drawing game.”
Arkansas’ Finance and Administration Secretary Jim Hudson expressed skepticism, stating, “We believe the proposed NIL raffle is not authorized under existing Arkansas law and could not be implemented with just a rule change. It’s also important to note the proposal is part of a broader request to allow casino gaming online. This would represent a major expansion of gaming in Arkansas and should not be rushed into without understanding its impact on our state.”
