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Bill Summary · HB 1634

Summary of HB 1634: Arkansas Sports Raffle Act

Bill Number: HB 1634
Title: To Establish the Arkansas Sports Raffle Act; and to Declare an Emergency
Status: Now Act 305
Introduced: February 28, 2025
Sponsors: Representatives Hawk, M. Shepherd, Eubanks, Evans, Achor, Duffield, Brooks, Maddox, Ray, L. Johnson; Senators Dismang, Hester, Boyd, McKee

Purpose and Intent

The Arkansas Sports Raffle Act aims to authorize institutions of higher education and their affiliated nonprofit organizations to conduct raffles for educational, charitable, or philanthropic purposes. This legislation is designed to support student-athletes and athletic programs while providing a legal framework for conducting such raffles, which are not regulated under the existing Charitable Bingo and Raffles Enabling Act.

Key Provisions

  • Eligibility: Only institutions of higher education and their affiliated nonprofit organizations can conduct raffles.
  • Raffle Conditions:
    • Raffles must be based on official games or sporting events involving the institution's collegiate athletic teams.
    • Limited to one raffle per game or event.
  • Conducting Raffles:
    • Raffles can be conducted via digital devices, online platforms, or physical premises owned by the qualifying organization.
  • Payment Methods:
    • Organizations may accept credit card payments, capped at $250 per transaction.
  • Use of Funds:
    • Proceeds from raffles can be used for various purposes, including:
    • Payment of prizes
    • Administrative costs
    • Scholarships and financial aid for student-athletes
    • General support for athletic programs
  • Restrictions:
    • No third-party administration of raffles is allowed.
    • Individuals under 18 cannot purchase raffle tickets.
    • Unclaimed prizes must be retained by the institution for 120 days.

Impact

  • Affected Entities: The act primarily impacts institutions of higher education and their affiliated nonprofit organizations in Arkansas, allowing them to raise funds through raffles.
  • Financial Implications: The act is expected to have no direct fiscal impact on institutional revenues, as affiliated foundations will cover start-up and operational costs.
  • Legal Framework: The raffles conducted under this act will be governed by Amendment 84 of the Arkansas Constitution, ensuring compliance with state laws regarding gambling.

Procedural Aspects

  • The act was passed with an emergency clause, indicating its immediate implementation upon being signed into law.
  • The Secretary of the Department of Finance and Administration is authorized to promulgate rules for enforcement.

Conclusion

The Arkansas Sports Raffle Act represents a significant change in how institutions of higher education can fundraise, providing a structured and legal means to conduct raffles that support student-athletes and athletic programs. By establishing clear guidelines and restrictions, the act aims to enhance the financial resources available to these institutions while ensuring compliance with existing laws.

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

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