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On Wednesday, an Arkansas legislative committee defeated a bill that would have created a raffle to benefit NIL programs for university athletics.
House Bill 1044, sponsored by Rep. R.J. Hawk, R-Bryant, was rejected on a voice vote in the House Committee on Rules. Under a 50/50 raffle, half the money raised at universities throughout the state would go to NIL (Name, Image, Likeness) funds to recruit athletes. The other half would go to the person winning the raffle. The schools could have conducted other raffles to benefit different programs.
The vote came after testimony from Carlton Saffa, chief market officer at Saracen Casino Resort in Pine Bluff, who expressed concern that a raffle as outlined in the bill did not clarify certain technology issues, including how the age of participants would be verified. The bill states participants must be at least 18.
Saffa also noted that the bill did not outline geolocation measures to ensure that online participants would be located within the state.
Saffa has offered to use his casino’s online sports betting technology to administer 50/50 drawings at no cost to the universities. Nationwide, more than 50 universities offer similar raffles administered by schools or independent firms that require a fee, according to testimony from other speakers.
Saffa said Saracen’s technology, which powers its BetSaracen sports-betting app, includes age verification and geolocation services. He also said Saracen would provide its random-number generator, which could be used in selecting winners, to the state’s other two casinos at no cost if they want to participate. Saracen has invested $1.2 million in the technology, he said.
Arkansas’ other licensed casinos are Oaklawn in Hot Springs and Southland in West Memphis. Representatives from those casinos did not attend the Rules Committee hearing.
During testimony on Wednesday, Rep.Brit McKenzie, R-Rogers, said Saffa’s offer to use Saracen’s technology to run a 50/50 NIL raffle for universities “comes at a price.” That price, McKenzie said, isSaffa’s desire to couple his offer of a free 50/50 service with language in the bill to legalize online casino gambling.
Known as iGaming, online casino gambling allows users to play traditional casino games such as slots and craps on smart phones and computers for money.
McKenzie asked Saffa if he would support a bill to legalize university raffles but not what McKenzie called “pocket gambling” or online casino gambling. While mobile sports betting is legal in Arkansas, online casino gambling is banned.
Saffa said illegal online casino gaming is already available in Arkansas and that he wants to seek approval for university athletic drawings and iGaming.
Attorney General Tim Griffin and the athletic directors at four universities, including Hunter Yurachek, athletic director of the University of Arkansas Razorbacks, testified in favor of the original bill.
When asked who would administer the raffle under HB1044, Yurachek mentioned the fundraising organization Bump, which provides these services for a fee.
During his public testimony, Saffa noted that Bump is a Canada-based operation.
Rep. Carol Dalby, R-Texarkana, earlier raised concerns about Arkansas money going to promotional companies not located within the state.