Arkansas casinos split over idea of funding NIL efforts for state colleges with online 50/50 raffles

LITTLE ROCK, Ark. – The world of college athletics has taken a turn in recent years, moving past grades and scholarship money. Now it’s about what schools can do for the student athletes outside of that.

Name, image and likeness (NIL) rules changed the game, leaving a big question for college sports fans from the Natural State – how do we get the best athletes to play in Arkansas?

Money is one answer is, of course, and an idea generating a stir online and around the state is how can the three casinos in Arkansas play a role in changing the game.

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A proposal by Saracen Casino and Resort in Jefferson County would generate NIL money through online 50/50 drawing at any college sporting event, which the casino estimates could majorly impact NIL funds each week.

“So, a 50/50 drawing works like this. You purchase an entry, a ticket, you’re in the pot,” Saracen chief marketing officer Carlton Saffa explained. “The pot grows with the more entries, 50% of it goes to the winning number 50% of it goes to the winning cause. In this instance the cause would be the NIL collective.”

The Saracen executive is going all in on the idea of allowing fans to enter this kind of raffle online and through apps, but that kind of play would require a change in Arkansas law.

Currently, state regulations allow for mobile gambling on horse races & sporting events but not games of chance. That means people can’t currently play slots, blackjack or other similar games on their phones.

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Saffa claims a move to set up this kind of 50/50 raffle could have a deeper impact in the state than just NIL money. He believes that allowing online games of chance for in-state casinos would stop offshore casinos from offering the same games illegally.

“(The change to state law) is a change that allows games of chance and specifically includes NIL 50/50 drawings. We can’t do those drawings for the NIL without the permission on games of chance,” Saffa said. “The NIL is simply the bonus because the problem is a $5 billion a year illegal gambling number that we’re wrestling with.”

Saffa also noted that the casino makes no money off of the raffle.

While executives with Saracen say state-approved online gaming would cause illegal companies to leave, Saracen isn’t the only casino in Arkansas.

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Oaklawn Racing Resort and Casino’s general manager Wayne Smith says there are other ways to kick out illegal gambling companies and support NIL efforts without legalizing iGaming.

“We just believe it is a bad policy to be able to put in the hands of every adult in the state of Arkansas a mini casino,” he told KARK 4 News.

Smith noted that it is not an issue of not having the technology, saying Oaklawn could roll it out a few months after possible legalization. Saracen managers said that their casino is also prepared to roll it out as soon as it’s legal.

Instead, Smith points to the efforts of his team to make Oaklawn more of a destination experience, noting that online gaming could take traveling off the table for some players.

“They’re not going to come to our casinos,” the GM said. “They’re going to sit at home and play, they’re not going to go to our restaurant, they’re not going to go to retail shops. So the sales tax dollars in all of these communities surround the state are going to be impacted.”

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Oaklawn is all in for NIL funding, donating $500,000 for the university to use for NIL efforts a few weeks ago, but Smith believes that iGaming and NIL don’t need to be combined.

“But the NIL piece, we’ll have all the conversations in the world in regards to that because we believe in that and we’ve shown that we believe it in because we gave money to it,” he said. “Don’t tie the two together, separate, let’s have the NIL, get rid of the iGaming.”

While Saffa and Smith may hold different opinions on iGaming being written into Arkansas law, the pair agree that illegal gaming is happening in the state.

“The solution is a change of Rule 5 in the Arkansas Racing Commission to allow games of chance,” Saffa contended. “It would generate $20 million in taxes the first year, protect children and allow casinos licenses to do what illegal offshore guys are doing now.”

“We do agree that we don’t want to compete against them (illegal gaming companies), so it would be best that we get them out,” Smith countered. “We just don’t believe that you should now come in because they are here & that means that we should have a regulated version of that.

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KARK 4 News reached out to the Department of Finance and Administration about this entire discussion, and in a statement noted a rule change was not under consideration at this time.

“While there is public discussion regarding a raffle/online gaming, the Racing Commission is not currently considering it. The only way to place a legal wager in Arkansas is at one of the state’s three casinos (or through their sports betting apps) or buying a ticket from the Arkansas Scholarship Lottery. Anything beyond that is not a legal wager. We are unable to speculate regarding the specifics of ideas being discussed.”

The agency did not provide any other details on what steps would have to happen to allow for iGaming or an NIL raffle. KARK 4 News also asked for details about illegal gambling in the state and has not heard back from the agency.

Saffa and Smith say a move to legalize such efforts would require the Arkansas Racing Commission to vote to approve it. Smith added that Oaklawn is not the reason this concept is being held up but that it all comes down to what commissioners vote to do.

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KARK 4 News also reached out to Gov. Sarah Huckabee Sanders’ office for a comment on the idea of raising NIL money through an online 50/50 raffle.

“Under current law, the state doesn’t have the authority to enact this proposal,” a spokesperson for Sanders wrote in a statement. “The Governor is working with stakeholders to navigate the broken NIL system and support our teams and student athletes.”

KARK 4 News also reached out to a number of schools, including the University of Arkansas, UA Pine Bluff, Arkansas State and University of Central Arkansas about the idea of a 50/50 NIL raffle.

The University of Arkansas shared a response stressing the importance of NIL funding for student athletes.

“Online gaming regulations in Arkansas are under the purview of state officials and the university has not taken a position on such rules. However, I want to make clear that university officials have not and would not suggest that our student athletes do not need support from Name, Image and Likeness funds,” the statement read. “NIL support is crucial to the success of our student athletes and athletic programs, and the university encourages state authorized avenues for raising such support for our student athletes.”

KARK 4 News has not yet received a response from the other universities.

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