Arkansas Sports Raffle Act

Ark. Code Ann. tit. 23, ch. 120

in effect

Ark. Code Ann. § 23-120-101 Title.

This chapter shall be known and may be cited as the "Arkansas Sports Raffle Act".

Ark. Code Ann. § 23-120-102 Legislative findings.

The General Assembly finds that: (1) It is in the public interest for an institution of higher education and its affiliated nonprofit organizations to conduct raffles for educational, charitable, or philanthropic purposes; and (2) The use of raffle funds by an institution of higher education and its affiliated nonprofit organizations for the purposes provided in this chapter will support philanthropic purposes by: (A) Raising the public image of the institution of higher education, which will attract more student-athletes and other students to the institution of higher education's educational programs; (B) Supporting student-athletes and providing financial resources to advance the educational endeavors of the student-athletes; and (C) Increasing the exposure of the institution of higher education to the public, which will attract additional financial support for academic programs at the institution of higher education.

Ark. Code Ann. § 23-120-103 Definitions.

As used in this chapter: (1) “Affiliated nonprofit organization” means an organization established by or an authorized affiliate of an institution of higher education within the State of Arkansas that: (A) Was created for the purpose of raising funds for the institution of higher education’s collegiate athletic program; (B) Has been approved for tax-exempt status under the Internal Revenue Code, 26 U.S.C. § 501(c)(3), as in effect on January 1, 2025; and (C) Has been in continuing existence as a nonprofit tax- exempt organization in the State of Arkansas at least five (5) years immediately prior to conducting a raffle; (2) “Qualifying organization” means an institution of higher education within the State of Arkansas or an affiliated nonprofit organization; and (3) “Raffle” means the selling of tickets or chances to win a prize awarded through a random drawing.

Ark. Code Ann. § 23-120-104 Conducting raffles.

(a) A qualifying organization is authorized to conduct a raffle under this chapter. (b) A raffle conducted by a qualifying organization under this chapter: (1) May be conducted on: (A) A digital or electronic device; (B) An online platform, website, or software application; or (C) Any premises owned, leased, or otherwise utilized by a qualifying organization; and (2) Shall be: (A) Based on an official game or sporting event between a qualifying organization's collegiate athletic team and an opposing institution of higher education's collegiate athletic team; and (B) Limited to one (1) raffle per official game or sporting event. (c) A qualifying organization conducting a raffle under this chapter: (1) May determine what method of payment the qualifying organization will accept in exchange for a raffle ticket; (2) Shall designate the prize amount or division of receipts of a raffle; and (3) Shall publicly announce the prize amount or division of receipts of a raffle prior to the sale of the raffle ticket. (d) A qualifying organization may utilize receipts from the raffle for the following purposes: (1) Payment of prizes designated for the raffle; (2) Payment of administrative costs, fees, or expenses to operate, conduct, advertise, and promote the raffle under this section; (3) Purchase of software, technology, supplies, or equipment to operate, conduct, advertise, and promote the raffle under this section; (4) Provision of scholarships, financial aid, stipends, or other compensation to a student-athlete attending the institution of higher education; (5) Compensation of a student-athlete for the commercial use of his or her publicity rights in accordance with the Arkansas Student-Athlete Publicity Rights Act, § 4-75-1301 et seq.; (6) General support of the institution of higher education’s athletics teams or programs; and (7) Purchase, maintenance, repair, debt service, or construction of the institution of higher education’s collegiate athletic property, facilities, or equipment. (e) If a qualifying organization elects to allow credit cards as a method of payment under subsection (c) of this section, there shall be a cap of two hundred fifty dollars ($250) per transaction.

Ark. Code Ann. § 23-120-105 Limitation on use of funds.

Receipts from a raffle shall not be used to compensate a person who works for or is affiliated with the qualifying organization that conducts the raffle.

Ark. Code Ann. § 23-120-106 Unclaimed raffle prizes.

A raffle prize that is unclaimed by a winner within one hundred twenty (120) days of the raffle shall be retained by the institution of higher education for which the raffle was conducted.

Ark. Code Ann. § 23-120-107 Restrictions.

(a) A person under eighteen (18) years of age shall not purchase a raffle ticket. (b) A qualifying organization shall conduct reasonable age verification. (c) A third party shall not conduct or otherwise administer a raffle on behalf of a qualifying organization. (d) A raffle conducted under this chapter is governed by Arkansas Constitution, Amendment 84.

Ark. Code Ann. § 23-120-108 Rules.

The Secretary of the Department of Finance and Administration may promulgate rules for the enforcement of this chapter.

Source: Arkansas General Assembly, Acts of 2021-2026 (arkleg.state.ar.us)URL: https://arkleg.state.ar.us/Acts/FTPDocument?path=%2FACTS%2F2025R%2FPublic%2F&file=305.pdf&ddBienniumSession=2025%2F2025RFetched: 11/8/2026