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HB 1634

Charter; City of Portsmouth.

2025 Regular Session

Arkansas would allow eligible universities and their affiliated 501(c)(3) foundations to run one game-based collegiate sports raffles to raise funds, with strict eligibility, payme

House sustained Governor's veto
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Bill Summary · HB 1634

Summary — HB 1634 (Arkansas Sports Raffle Act)

Note: the materials provided include filings and drafts from multiple states and sessions. This summary focuses on the Arkansas proposal titled the "Arkansas Sports Raffle Act" that appears as HB 1634 in the 95th Arkansas General Assembly materials.

Purpose / Intent

HB 1634 would authorize institutions of higher education in Arkansas — and their affiliated nonprofit fundraising organizations — to conduct limited raffles tied to collegiate athletic contests to raise funds for educational, athletic, charitable, or philanthropic purposes. It creates a new statutory framework (the Arkansas Sports Raffle Act) and declares that those raffles are not regulated by the state's Charitable Bingo and Raffles Enabling Act.

Key provisions

  • Creates a new chapter (Ark. Code § 23-120-101 et seq.) titled the "Arkansas Sports Raffle Act."
  • Defines eligible "qualifying organizations": an Arkansas institution of higher education or an affiliated nonprofit that is a 501(c)(3), has existed at least 5 years, and is established to raise funds for the school’s collegiate athletic program.
  • Permitted raffles:
    • Must be based on an official collegiate athletic game between the qualifying organization's team and another institution of higher education.
    • Limited to one raffle per official game or sporting event.
    • May be conducted via digital/electronic devices, online platforms/websites/apps, or on premises owned/used by the qualifying organization.
  • Payment rules:
    • Qualifying organizations may set accepted payment methods.
    • If credit cards are accepted, a per-transaction cap of $250 applies.
  • Uses of proceeds (permitted):
    • Prize payments and administrative costs (operation, advertising, software/equipment).
    • Scholarships, financial aid, stipends, or other compensation to student-athletes.
    • Compensation for student-athlete publicity rights per existing Arkansas law.
    • General athletic team/program support and athletic property/facility/equipment purchase, maintenance, repair, or debt service.
  • Restrictions:
    • Raffle receipts may not be used to compensate persons who work for or are affiliated with the qualifying organization (i.e., staff compensation prohibited).
    • Persons under 18 may not purchase raffle tickets; qualifying organizations must perform reasonable age verification.
    • Third parties are prohibited from conducting or administering raffles on behalf of a qualifying organization.
    • Unclaimed prizes revert to the institution if unclaimed within 120 days.
  • Regulatory authority: Secretary of the Arkansas Department of Finance and Administration may promulgate enforcement rules.
  • Clarifies that these raffles are governed by Arkansas Constitution Amendment 84 (the state constitutional provision authorizing certain charitable raffles) and creates an exception for such raffles in alcoholic beverage permit statutes (i.e., not treated as prohibited gambling for ABC permit purposes).

Fiscal impact

  • Department of Finance and Administration: no state fiscal impact identified.
  • Arkansas Department of Education: estimated $0 direct revenue impact to institutions (start-up and operating costs expected to be borne by affiliated foundations).
  • Some administrative/training resources expected for DF&A Regulatory Division enforcement officers (not quantified).

Who would be affected

  • Institutions of higher education in Arkansas and their affiliated 501(c)(3) nonprofit foundations.
  • Student-athletes (potential recipients of scholarships, stipends, or publicity compensation).
  • Donors and raffle participants (subject to age and payment rules).
  • Department of Finance and Administration / Alcoholic Beverage Control (enforcement/interpretation responsibilities).

Procedural / timeline notes

  • Introduced (filed) December 16, 2024 (per provided metadata).
  • The user-provided metadata lists the bill status as "Died In Committee" (date shown: March 4, 2025). The bill text includes an emergency clause (would take effect immediately if enacted).
  • The documents provided include fiscal statements and sponsor lists. Readers should note there are mixed or overlapping legislative records in the packet (materials from other states or different HB1634s); consult the Arkansas legislative history and session records for final disposition.

Compiled from official sources — confirm details with the bill’s official record.

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