Arkansas Online Gambling Expansion Proposal Faces Regulatory Scrutiny

In Arkansas, a significant debate is unfolding between two of the state’s three casinos over a proposed expansion of online gaming. This proposal includes a provision to direct a portion of the revenue towards funds that collegiate athletic collectives. According to a detailed report by Michael Wickline of the Arkansas Democrat-Gazette, Saracen Casino Resort in Pine Bluff, under the leadership of Chief Marketing Officer Carlton Saffa, is at the forefront of this initiative.

Details of Saracen Casino’s Proposal

Saracen Casino Resort aims to introduce an online game resembling a raffle, with the intention of allocating part of the generated revenue to collegiate athletic collectives throughout Arkansas. These collectives are organizations that facilitate payments to college athletes for the use of their name, image, and likeness (NIL). The proposal seeks to create a new revenue stream to these collectives, thereby aiding college athletes who benefit from such arrangements.

The Arkansas Racing Commission, which oversees the state’s casinos and gaming activities, has expressed reservations about the proposed online game. The Commission contends that the game’s structure resembles a raffle, a form of gambling that is explicitly prohibited under current state regulations. Despite the proposal’s omission of the term “raffle,” the Commission’s concerns hinge on the similarity of the proposed game to existing definitions of raffles.

The Arkansas Racing Commission’s apprehension is compounded by state law, which restricts raffles and similar gaming activities. Alexa Henning, spokesperson for Governor Sarah Sanders, has indicated that state law does not permit raffles. This legal stance raises questions about the permissibility of Saracen Casino’s proposed online game.

The use of the term “believe” by Hudson, a spokesperson involved in the discussion, suggests that the issue might reside in a legal gray area. This implies that the proposal’s compliance with existing regulations may require further interpretation and clarification. The ambiguity surrounding the proposal’s alignment with state law underscores the complex regulatory landscape governing online gaming in Arkansas.

Public and Industry Reactions

Carlton Saffa, Saracen Casino’s chief marketing officer, has been actively promoting the proposal through social media platforms, including X, formerly known as Twitter. His advocacy highlights the casino’s commitment to advancing the proposal and addressing the concerns raised by the Arkansas Racing Commission. Saffa’s public engagement reflects the casino’s strategic efforts to garner and navigate the regulatory challenges associated with the proposed expansion.

The dispute between Saracen Casino and other stakeholders in the state’s gaming industry reveals the broader implications of the proposal on the regulatory framework and the future of online gaming in Arkansas. As the debate continues, the resolution of these concerns will likely influence the trajectory of online gaming expansions and the funding mechanisms for collegiate athletic collectives.

Department spokesman Scott Hardin provided this statement: ”Saracen Casino initially circulated a proposal a couple of months ago that would amend existing casino rules to allow for online casino gaming in the state (via the state’s licensed casinos). In early August a lawyer for Saracen sent the attached revised version of those changes to a lawyer for the Racing Commission, with the addition of a raffle with proceeds going to NIL at Arkansas’ schools. The Racing Commission has not discussed the initial proposal to expand to online gaming or the addition of the raffle. It is not on an agenda. Below is a quote from DFA Secretary Hudson (Racing Commission is a division of DFA). Any rule changes from the Commission are reviewed by DFA. DFA does not believe this (raffle) could be accomplished via a rule change. There is a statutory ban on online raffles that can be found at Arkansas Code Section 23-114-401.”

From Hudson: “We believe the proposed NIL raffle is not authorized under existing Arkansas law and could not be implemented with just a rule change. It’s also important to note the proposal is part of a broader request to allow casino gaming online. This would represent a major expansion of gaming in Arkansas and should not be rushed into without understanding its impact on our state. I share the concerns about foreign illegal gaming, and DFA is committed to working with our casino partners and law enforcement to address it.”

Source:

”Saracen Casino wants Arkansas Racing Commission to expand online gambling, allow drawing game to help with NIL collective”, arkansasonline.com, August 13, 2024.