Arkansas Edge, the University of Arkansas’ name, image, likeness (NIL) collective, is seeking to operate an online 50/50 raffle that it says could raise millions of dollars to help lure marquee talent to Razorbacks programs.
Arkansas Edge is seeking permission from the Arkansas Racing Commission (ARC), the state’s gaming and racing regulator, to amend its rules to permit electronic 50/50 raffles. Operating such an online raffle would be costly, as managing an internet sweepstakes would require Arkansas Edge to partner with and utilize a geolocation technology service provider like GeoComply to ensure that only people physically located within the state are participating. There would also be “know your customer” components.
To help alleviate those overhead costs and deliver Arkansas Edge more funds to use for NIL sponsorships of the Razorbacks’ college athletes in the highly competitive and heavily NIL-funded SEC (Southeastern Conference), Saracen Casino Resort in Jefferson County’s Pine Bluff says it’s willing to lend its Bet Saracen Sportsbook to the online raffle initiative.
Since Bet Saracen already has geofencing technology and KYC protocols in place to allow anyone aged 21 and older physically located inside Arkansas to place online sports bets, the casino owned and operated by the Quapaw Tribe of Oklahoma says it can run the electronic 50/50 raffle.
Big Catch
Saracen reps say if Arkansas wishes to allow an online raffle to support the Razorbacks’ NIL program, the state might as well also go ahead and legalize iGaming — online slot machines and interactive table games. Casino officials have presented regulatory amendments to ARC’s online sports betting rules to allow raffles and iGaming.
Saracen leaders have recommended altering the definition of “interactive gaming” to include “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.”
We would have an innovative NIL fundraising strategy that no state has,” Saracen Chief Marketing Officer Carlton Saffa told Best of Arkansas Sports.
“I graduated from the University of Arkansas,” Saffa added. “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.”
As for online slot machines and table games, Saffa said the state authorizing its three brick-and-mortar casinos to operate such interactive gaming would help rid the state of illegal, offshore websites and apps that actively target players in states where iGaming isn’t allowed.
Immediate Pushback
The odds of Arkansas Edge and Bet Saracen teaming up for NIL aren’t exactly good.
The state’s Charitable Bingo and Raffles Act requires that bingo games and raffles be tied to charitable organizations that have been recognized by the state for a minimum of five years. Arkansas Edge is not a 503(c)(3) charitable group.
To circumvent that concern, Arkansas Edge and Saracen carefully worded its proposed regulatory language to refer to an online 50/50 raffle as a “NIL drawing game.”
Arkansas’ Finance and Administration Secretary Jim Hudson isn’t sold.
We believe the proposed NIL raffle is not authorized under existing Arkansas law and could not be implemented with just a rule change,” Hudson said in a statement.
“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,” Hudson continued.