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Arkansas General Assembly· HB 1634Notification that HB1634 is now Act 305

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

Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas               A Bill
2 95th General Assembly

3 Regular Session, 2025                                           HOUSE BILL 1634

4

5 By: Representatives Hawk, M. Shepherd, Eubanks, Evans, Achor, Duffield, Brooks, Maddox, Ray, L.

6 Johnson

7 By: Senators J. Dismang, Hester, J. Boyd, M. McKee

8

9                        For An Act To Be Entitled

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

11         THAT THE CHARITABLE BINGO AND RAFFLES ENABLING ACT

12         DOES NOT REGULATE CERTAIN RAFFLES CONDUCTED BY

13         INSTITUTIONS OF HIGHER EDUCATION OR AFFILIATED

14         NONPROFIT ORGANIZATIONS; TO ESTABLISH THE ARKANSAS

15         SPORTS RAFFLE ACT; TO AMEND THE LAW REGARDING

16         ALCOHOLIC BEVERAGES TO ADD THE ARKANSAS SPORTS RAFFLE

17         ACT AS AN EXCEPTION TO VARIOUS PROHIBITED PRACTICES;

18         TO DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.

19

20

21                                Subtitle

22                       TO ESTABLISH THE ARKANSAS SPORTS RAFFLE

23                       ACT; AND TO DECLARE AN EMERGENCY.

24

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

26

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

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

29 read as follows:

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

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

32 electronic device or machine.

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

34 institution of higher education or its affiliated nonprofit organization from

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

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

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1

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

3 chapter to read as follows:

4

5                              CHAPTER 120

6                       ARKANSAS SPORTS RAFFLE ACT

7

8   23-120-101. Title.

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

10 Raffle Act".

11

12  23-120-102. Legislative findings.

13  The General Assembly finds that:

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

15 education and its affiliated nonprofit organizations to conduct raffles for

16 educational, charitable, or philanthropic purposes; and

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

18 education and its affiliated nonprofit organizations for the purposes

19 provided in this chapter will support philanthropic purposes by:

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

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

22 institution of higher education's educational programs;

23               (B) Supporting student-athletes and providing financial

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

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

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

27 academic programs at the institution of higher education.

28

29  23-120-103. Definitions.

30  As used in this chapter:

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

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

33 education within the State of Arkansas that:

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

35 institution of higher education's collegiate athletic program;

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

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

2 2025; and

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

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

5 immediately prior to conducting a raffle;

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

7 education within the State of Arkansas or an affiliated nonprofit

8 organization; and

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

10 prize awarded through a random drawing.

11

12     23-120-104. Conducting raffles.

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

14 this chapter.

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

16 chapter:

17           (1) May be conducted on:

18                   (A) A digital or electronic device;

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

20 or

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

22 qualifying organization; and

23           (2) Shall be:

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

25 qualifying organization's collegiate athletic team and an opposing

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

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

28 sporting event.

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

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

31 organization will accept in exchange for a raffle ticket;

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

33 a raffle; and

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

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

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

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1 the following purposes:

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

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

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

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

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

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

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

9 education;

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

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

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

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

14 athletics teams or programs; and

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

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

17 facilities, or equipment.

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

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

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

21

22  23-120-105. Limitation on use of funds.

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

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

25 raffle.

26

27  23-120-106. Unclaimed raffle prizes.

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

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

30 education for which the raffle was conducted.

31

32  23-120-107. Restrictions.

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

34 raffle ticket.

35  (b) A qualifying organization shall conduct reasonable age

36 verification.

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1   (c) A third party shall not conduct or otherwise administer a raffle

2 on behalf of a qualifying organization.

3   (d) A raffle conducted under this chapter is governed by Arkansas

4 Constitution, Amendment 84.

5

6   23-120-108. Rules.

7   The Secretary of the Department of Finance and Administration may

8 promulgate rules for the enforcement of this chapter.

9

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

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

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

13  (B) Conducting or permitting gambling under subdivision

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

15  (i) Charitable bingo and raffles under the

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

17  (ii) A lottery under the Arkansas Scholarship

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

19  (iii) A raffle conducted under the Arkansas Sports

20 Raffle Act, � 23-120-101 et seq.;

21

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

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

24 license, is amended to read as follows:

25  (ii) Forms of gambling under subdivision

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

27                             (a) Charitable bingo and raffles under the

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

29                             (b) A lottery under the Arkansas Scholarship

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

31                             (c) A raffle conducted under the Arkansas

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

33

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

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

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

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1   (B) Permitting gambling or games of chance under

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

3   (i) Charitable bingo and raffles under the

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

5   (ii) A lottery under the Arkansas Scholarship

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

7   (iii) A raffle conducted under the Arkansas Sports

8 Raffle Act, � 23-120-101 et seq.;

9

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

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

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

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

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

15  (i) Charitable bingo and raffles under the

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

17  (ii) A lottery under the Arkansas Scholarship

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

19  (iii) A raffle conducted under the Arkansas Sports

20 Raffle Act, � 23-120-101 et seq.;

21

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

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

24 education and their affiliated nonprofit organizations are intertwined with

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

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

27 current prohibitions on institutions of higher education and their affiliated

28 nonprofit organizations from conducting raffles for educational, charitable,

29 or philanthropic purposes hinder institutions of higher education and their

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

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

32 to ensure that institutions of higher education and their affiliated

33 nonprofit organizations can financially support their student-athletes and

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

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

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

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

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

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

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

5 bill; or

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

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

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