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Arkansas General Assembly· HB 1044Died in House Committee at Sine Die adjournment.

An act TO AMEND THE LAW REGARDING RAFFLES, the official text

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Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas      As Engrossed: H1/30/25
2 95th General Assembly
                              A Bill

3 Regular Session, 2025                                                       HOUSE BILL 1044

4

5 By: Representatives Hawk, Achor, Duffield, Brooks, Maddox, Ray, L. Johnson

6 By: Senators J. Dismang, J. Boyd, M. McKee

7

8                        For An Act To Be Entitled

9   AN ACT TO AMEND THE LAW REGARDING RAFFLES; TO PROVIDE

10  THAT THE CHARITABLE BINGO AND RAFFLES ENABLING ACT

11  DOES NOT REGULATE CERTAIN RAFFLES CONDUCTED BY

12  INSTITUTIONS OF HIGHER EDUCATION OR AFFILIATED

13  NONPROFIT ORGANIZATIONS; TO ESTABLISH THE ARKANSAS

14  SPORTS RAFFLE ACT; TO AMEND THE LAW REGARDING

15  ALCOHOLIC BEVERAGES TO ADD THE ARKANSAS SPORTS RAFFLE

16  ACT AS AN EXCEPTION TO VARIOUS PROHIBITED PRACTICES;

17  TO DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.

18

19

20                                            Subtitle

21                       TO ESTABLISH THE ARKANSAS SPORTS RAFFLE

22                       ACT; AND TO DECLARE AN EMERGENCY.

23

24 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

25

26  SECTION 1. Arkansas Code � 23-114-103(c), concerning general

27 provisions under the Charitable Bingo and Raffles Enabling Act, is amended to

28 read as follows:

29  (c)(1) The provisions of this chapter are not intended and shall not

30 be construed to allow the play of games of bingo or raffles through any

31 electronic device or machine.

32  (2) This chapter shall not regulate, limit, or prohibit an

33 institution of higher education or its affiliated nonprofit organization from

34 conducting raffles for charitable, philanthropic, or educational purposes in

35 accordance with the Arkansas Sports Raffle Act, � 23-120-101 et seq.

36

    *CRH014*                                                                  01-30-2025 10:07:53 CRH014
    As Engrossed: H1/30/25                                                HB1044

1   SECTION 2. Arkansas Code Title 23 is amended to add an additional

2 chapter to read as follows:

3

4                              CHAPTER 120

5                           ARKANSAS SPORTS RAFFLE ACT

6

7   23-120-101. Title.

8   This chapter shall be known and may be cited as the "Arkansas Sports

9 Raffle Act".

10

11  23-120-102. Legislative findings.

12  The General Assembly finds that:

13  (1) It is in the public interest for an institution of higher

14 education and its affiliated nonprofit organizations to conduct raffles for

15 educational, charitable, or philanthropic purposes; and

16  (2) The use of raffle funds by an institution of higher

17 education and its affiliated nonprofit organizations for the purposes

18 provided in this chapter will support philanthropic purposes by:

19              (A) Raising the public image of the institution of higher

20 education, which will attract more student-athletes and other students to the

21 institution of higher education's educational programs;

22              (B) Supporting student-athletes and providing financial

23 resources to advance the educational endeavors of the student-athletes; and

24              (C) Increasing the exposure of the institution of higher

25 education to the public, which will attract additional financial support for

26 academic programs at the institution of higher education.

27

28  23-120-103. Definitions.

29  As used in this chapter:

30  (1) "Affiliated nonprofit organization" means an organization

31 established by or an authorized affiliate of an institution of higher

32 education within the State of Arkansas that:

33              (A) Was created for the purpose of raising funds for the

34 institution of higher education's collegiate athletic program;

35              (B) Has been approved for tax-exempt status under the

36 Internal Revenue Code, 26 U.S.C. � 501(c)(3), as in effect on January 1,

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    As Engrossed: H1/30/25                                               HB1044

1 2025; and

2                    (C) Has been in continuing existence as a nonprofit tax-

3 exempt organization in the State of Arkansas at least five (5) years

4 immediately prior to conducting a raffle;

5            (2) "Qualifying organization" means an institution of higher

6 education within the State of Arkansas or an affiliated nonprofit

7 organization; and

8            (3) "Raffle" means the selling of tickets or chances to win a

9 prize awarded through a random drawing.

10

11     23-120-104. Conducting raffles.

12     (a) A qualifying organization is authorized to conduct a raffle under

13 this chapter.

14     (b) A raffle conducted by a qualifying organization under this

15 chapter:

16           (1) May be conducted on:

17                   (A) A digital or electronic device;

18                   (B) An online platform, website, or software application;

19 or

20                   (C) Any premises owned, leased, or otherwise utilized by a

21 qualifying organization; and

22           (2) Shall be:

23                   (A) Based on an official game or sporting event between a

24 qualifying organization's collegiate athletic team and an opposing

25 institution of higher education's collegiate athletic team; and

26                   (B) Limited to one (1) raffle per official game or

27 sporting event.

28     (c) A qualifying organization conducting a raffle under this chapter:

29           (1) May determine what method of payment the qualifying

30 organization will accept in exchange for a raffle ticket;

31           (2) Shall designate the prize amount or division of receipts of

32 a raffle; and

33           (3) Shall publicly announce the prize amount or division of

34 receipts of a raffle prior to the sale of the raffle ticket.

35     (d) A qualifying organization may utilize receipts from the raffle for

36 the following purposes:

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    As Engrossed: H1/30/25                                                  HB1044

1             (1) Payment of prizes designated for the raffle;

2             (2) Payment of administrative costs, fees, or expenses to

3 operate, conduct, advertise, and promote the raffle under this section;

4             (3) Purchase of software, technology, supplies, or equipment to

5 operate, conduct, advertise, and promote the raffle under this section;

6             (4) Provision of scholarships, financial aid, stipends, or other

7 compensation to a student-athlete attending the institution of higher

8 education;

9             (5) Compensation of a student-athlete for the commercial use of

10 his or her publicity rights in accordance with the Arkansas Student-Athlete

11 Publicity Rights Act, � 4-75-1301 et seq.;

12            (6) General support of the institution of higher education's

13 athletics teams or programs; and

14            (7) Purchase, maintenance, repair, debt service, or construction

15 of the institution of higher education's collegiate athletic property,

16 facilities, or equipment.

17  (e) If a qualifying organization elects to allow credit cards as a

18 method of payment under subsection (c) of this section, there shall be a cap

19 of two hundred fifty dollars ($250) per transaction.

20

21  23-120-105. Limitation on use of funds.

22  Receipts from a raffle shall not be used to compensate a person who

23 works for or is affiliated with the qualifying organization that conducts the

24 raffle.

25

26  23-120-106. Unclaimed raffle prizes.

27  A raffle prize that is unclaimed by a winner within one hundred twenty

28 (120) days of the raffle shall be retained by the institution of higher

29 education for which the raffle was conducted.

30

31  23-120-107. Restrictions.

32  (a) A person under eighteen (18) years of age shall not purchase a

33 raffle ticket.

34  (b) A casino licensee or an agent of a casino licensee shall not act

35 as a third-party operator or otherwise administer a raffle on behalf of the

36 qualifying organization.

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    As Engrossed: H1/30/25                                                 HB1044

1

2   SECTION 3. Arkansas Code � 3-4-403(19)(B), concerning the exception

3 from the Class A permit violation for conducting or permitting gambling on

4 premises with an alcoholic beverage permit, is amended to read as follows:

5   (B) Conducting or permitting gambling under subdivision

6 (19)(A) of this section does not include:

7                           (i) Charitable bingo and raffles under the

8 Charitable Bingo and Raffles Enabling Act, � 23-114-101 et seq.; or

9                           (ii) A lottery under the Arkansas Scholarship

10 Lottery Act, � 23-115-101 et seq.; or

11                          (iii) A raffle conducted under the Arkansas Sports

12 Raffle Act, � 23-120-101 et seq.;

13

14  SECTION 4. Arkansas Code � 3-5-221(d)(1)(A)(ii), concerning exceptions

15 to the crime of gambling on the premises of a holder of a beer and light wine

16 license, is amended to read as follows:

17                          (ii) Forms of gambling under subdivision

18 (d)(1)(A)(i) of this section do not include:

19                          (a) Charitable bingo and raffles under the

20 Charitable Bingo and Raffles Enabling Act, � 23-114-101 et seq.; or

21                          (b) A lottery under the Arkansas Scholarship

22 Lottery Act, � 23-115-101 et seq.; or

23                          (c) A raffle conducted under the Arkansas

24 Sports Raffle Act, � 23-120-101 et seq.;

25

26  SECTION 5. Arkansas Code � 3-5-307(5)(B), concerning exceptions to

27 prohibited practices related to gambling on the premises of a holder of a

28 beer retailer license, is amended to read as follows:

29  (B) Permitting gambling or games of chance under

30 subdivision (5)(A) of this section does not include:

31                          (i) Charitable bingo and raffles under the

32 Charitable Bingo and Raffles Enabling Act, � 23-114-101 et seq.; or

33                          (ii) A lottery under the Arkansas Scholarship

34 Lottery Act, � 23-115-101 et seq.; or

35                          (iii) A raffle conducted under the Arkansas Sports

36 Raffle Act, � 23-120-101 et seq.;

                                      5          01-30-2025 10:07:53 CRH014
    As Engrossed: H1/30/25                                                 HB1044

1

2   SECTION 6. Arkansas Code � 3-9-236(15)(C), concerning exceptions to

3 the crime of allowing gambling on the premises of a holder of a permit for

4 on-premises consumption of alcohol, is amended to read as follows:

5            (C) A gambling or a gaming device, machine, or apparatus

6 under subdivision (15)(A) of this section does not include:

7                           (i) Charitable bingo and raffles under the

8 Charitable Bingo and Raffles Enabling Act, � 23-114-101 et seq.; or

9                           (ii) A lottery under the Arkansas Scholarship

10 Lottery Act, � 23-115-101 et seq.; or

11                          (iii) A raffle conducted under the Arkansas Sports

12 Raffle Act, � 23-120-101 et seq.;

13

14  SECTION 7. EMERGENCY CLAUSE. It is found and determined by the

15 General Assembly of the State of Arkansas that institutions of higher

16 education and their affiliated nonprofit organizations are intertwined with

17 economic development, the education of student-athletes, commerce, and other

18 governmental interests that otherwise impact the State of Arkansas; that the

19 current prohibitions on institutions of higher education and their affiliated

20 nonprofit organizations from conducting raffles for educational, charitable,

21 or philanthropic purposes hinder institutions of higher education and their

22 student-athletes, which thereby hinder economic development, education, and

23 commerce in the State of Arkansas; and that this act is immediately necessary

24 to ensure that institutions of higher education and their affiliated

25 nonprofit organizations can financially support their student-athletes and

26 athletic programs, which will bolster economic development, education, and

27 commerce in the State of Arkansas. Therefore, an emergency is declared to

28 exist, and this act being immediately necessary for the preservation of the

29 public peace, health, and safety shall become effective on:

30           (1) The date of its approval by the Governor;

31           (2) If the bill is neither approved nor vetoed by the Governor,

32 the expiration of the period of time during which the Governor may veto the

33 bill; or

34           (3) If the bill is vetoed by the Governor and the veto is

35 overridden, the date the last house overrides the veto.

36

                                      6   01-30-2025 10:07:53 CRH014
         As Engrossed: H1/30/25           HB1044

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