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Arkansas General Assembly· SB 231Notification that SB231 is now Act 342

An act TO AMEND THE LAW REGARDING THE OFFICE OF THE 10 ARKANSAS LOTTERY, 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          As Engrossed: S2/17/25 S2/26/25
2 95th General Assembly
                                      A Bill

3 Regular Session, 2025                                            SENATE BILL 231

4

5 By: Senator J. Dotson

6 By: Representative Cozart

7

8                            For An Act To Be Entitled

9               AN ACT TO AMEND THE LAW REGARDING THE OFFICE OF THE

10              ARKANSAS LOTTERY; TO CONFER LAW ENFORCEMENT AUTHORITY

11              ON SELECT EMPLOYEES OF THE OFFICE OF THE ARKANSAS

12              LOTTERY; AND FOR OTHER PURPOSES.

13

14

15                                          Subtitle

16                       TO CONFER LAW ENFORCEMENT AUTHORITY ON

17                       SELECT EMPLOYEES OF THE OFFICE OF THE

18                       ARKANSAS LOTTERY.

19

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

21

22  SECTION 1. Arkansas Code � 23-115-205 is amended to read as follows:

23  23-115-205. Office of the Arkansas Lottery powers.

24  (a) The Office of the Arkansas Lottery has all powers necessary or

25 convenient to its usefulness in carrying out this chapter that are not in

26 conflict with the Arkansas Constitution or the United States Constitution,

27 including without limitation the following powers:

28              (1) To adopt and alter a seal;

29              (2) To adopt, amend, and repeal rules for the regulation of its

30 affairs and the conduct of its business, to prescribe the duties of officers

31 and employees of the office, and to perform other matters as the office

32 determines;

33              (3) To bring suits to enforce demands of the state under this

34 chapter;

35              (4) To procure or to provide insurance;

36              (5) To hold copyrights, trademarks, and service marks and to

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1 enforce the office's rights with respect to those copyrights, trademarks, and

2 service marks;

3              (6) To initiate, supervise, and administer the operation of

4 lotteries in accordance with this chapter and rules adopted under this

5 chapter;

6              (7) To enter into written agreements with one (1) or more other

7 states or sovereigns for the operation, participation in marketing, and

8 promotion of multistate or multisovereign games;

9              (8) To conduct market research as necessary or appropriate;

10             (9) To acquire or lease real property and make improvements to

11 the real property and acquire by lease or by purchase personal property,

12 including without limitation:

13                (A) Computers;

14                (B) Mechanical, electronic, and online equipment and

15 terminals;

16                (C) Intangible property, including without limitation

17 computer programs, computer systems, and computer software; and

18                (D) Broadcast equipment;

19             (10) To administer oaths, take depositions, issue subpoenas, and

20 compel the attendance of witnesses and the production of books, papers,

21 documents, and other evidence relative to any investigation or proceeding

22 conducted by the office;

23             (11) To employ an internal auditor to perform the duties and

24 responsibilities required under � 23-115-212;

25             (12) To select and contract with vendors;

26             (13) To select and license retailers;

27             (14) To enter into contracts or agreements with state or local

28 law enforcement agencies for the performance of law enforcement, background

29 investigations, and security checks;

30             (15) To conduct background investigations and, if considered

31 necessary by the Director of the Office of the Arkansas Lottery, credit

32 investigations on each potential vendor and retailer;

33             (16) To supervise ticket or share validation and lottery

34 drawings;

35             (17) To inspect at times determined solely by the office the

36 facilities of a vendor or a retailer to determine:

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1                    (A) The integrity of the vendor's product or the

2 operations of the retailer; and

3                    (B) Whether the vendor or the retailer is in compliance

4 with its contract or license;

5           (18) To report any suspected violation of this chapter to the

6 appropriate prosecuting attorney or the Attorney General and to any law

7 enforcement agencies having jurisdiction over the violation;

8           (19) Upon request, to provide assistance to the Chief Fiscal

9 Officer of the State, the Legislative Auditor, the appropriate prosecuting

10 attorney, the Attorney General, or a law enforcement agency investigating a

11 violation of this chapter;

12          (20) To enter into contracts of terms and conditions that the

13 office determines;

14          (21) To establish and maintain banking relationships associated

15 with the maintenance and investment of lottery proceeds, including without

16 limitation the establishment of checking and savings accounts and trust

17 funds;

18          (22)(A) To advertise and promote lotteries and scholarships and

19 grants funded by net proceeds.

20                   (B) The office shall seek the advice of the Division of

21 Higher Education when advertising to promote scholarships and grants funded

22 by net proceeds;

23          (23) To act as a retailer and to establish and operate a sales

24 facility to conduct promotions that involve the sale of tickets or shares and

25 any related merchandise;

26          (24)(A) To contract with one (1) or more independent testing

27 laboratories to scientifically test and technically evaluate lottery games,

28 lottery terminals, and lottery operating systems.

29                   (B) An independent testing laboratory shall:

30                     (i) Have a national reputation that is demonstrably

31 competent; and

32                     (ii) Be qualified to scientifically test and evaluate

33 all components of a lottery game, lottery terminal, or lottery operating

34 system.

35                   (C) An independent testing laboratory shall not be owned

36 or controlled by a vendor or a retailer;

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1            (25) To withhold state and federal income taxes as required by

2 law; and

3            (26) To adopt and amend rules necessary to carry out and

4 implement the office's powers and duties, organize and operate the office,

5 regulate the conduct of lotteries in general, and any other matters necessary

6 or desirable for the efficient and effective operation of lotteries for the

7 convenience of the public.

8   (b) The powers enumerated in subsection (a) of this section:

9            (1) Are in addition to those powers of the office enumerated

10 elsewhere in this chapter; and

11           (2) Do not limit or restrict any other powers of the office.

12  (c) The office is responsible for maintaining the integrity of the

13 lottery.

14  (d) The director shall:

15           (1) Assign personnel as agents of the office to conduct

16 investigations related to violations of lottery-related laws or lottery-

17 related administrative rules; and

18           (2) Report on the investigations conducted under subdivision

19 (d)(1) of this section on a regular basis to the office of the Attorney

20 General and the Division of Arkansas State Police.

21  (e) Personnel assigned as agents of the office shall:

22           (1) Be considered law enforcement officers by the Arkansas

23 Commission on Law Enforcement Standards and Training pursuant to � 12-9-101

24 et seq.; and

25           (2) Have statewide law enforcement authority to conduct

26 investigations related to violations of lottery-related laws or lottery-

27 related administrative rules.

28

29                                   /s/J. Dotson

30

31

32

33

34

35

36

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