Arkansas Edge, a part of the University of Arkansas’ NIL Collective, is looking to raise funds for athletes through mobile 50/50 raffle draws. The lack of a player’s union in collegiate sports means there is no salary cap, allowing organizations and individuals to provide funding to colleges in hopes of achieving success. With the potential change in legislation, Arkansas Edge aims to bring in money through these raffles to support their athletes.
Revenue athletes at Arkansas are primarily compensated through “pay-for-play” contracts from Arkansas Edge, which is focused on rewarding athletes for their athletic abilities. The more money that is raised, the more power colleges have to retain their athletes or attract talent from other universities. This is where the 50/50 raffle comes into play as a fundraising mechanism for the NIL Collective.
Arkansas Edge has partnered with local casino Saracen Resort to utilize mobile wagering technology for the raffles. While many sporting events offer similar raffles, Arkansas Edge needs to navigate existing laws to make this plan a reality. The proposed legislation would create a special category for these raffles under casino regulations governed by the Arkansas Racing Commission.
However, there are potential violations of Arkansas’ Charitable Bingo and Raffles Act with this proposal. The requirement that an entity must be recognized as a charity for at least five years poses an issue for Arkansas Edge, which has only been in operation since 2023. Additionally, online ticket sales for raffles are not allowed in Arkansas, but the use of Saracen Casino’s mobile wagering platform would enable anyone in Arkansas to participate in the raffles.
To work around these regulations, Arkansas Edge is careful not to refer to the raffles as such, instead calling them “NIL drawing games.” By framing the raffles in this way and with the proposed legislation, Arkansas Edge hopes to bypass restrictions on mobile gaming technology for charitable purposes. However, some critics argue that leveraging fans’ money for athlete compensation is not a charitable cause.
In conclusion, Arkansas Edge’s innovative approach to fundraising for athletes through 50/50 raffle draws raises legal and ethical questions. While the potential for increased revenue is appealing, the organization must navigate existing laws and ensure transparency in their operations to avoid any legal issues. The debate over compensating collegiate athletes continues, and Arkansas Edge’s efforts highlight the complexities of the NIL landscape.