Two of Arkansas’s three casinos are fighting over a proposal to expand online gaming and send a portion of the revenue to funds that funnel money to college athletes, according to a detailed report from Michael Wickline of the Arkansas Democrat-Gazette today.
Saracen Casino Resort in Pine Bluff, led by Chief Marketing Officer Carlton Saffa, wants to create an online game similar to a raffle that would send some money to collegiate athletic collectives around the state. Collectives are the popular vehicle through which college athletic programs pay players for the use of their name, image and likeness.
The Arkansas Racing Commission, which regulates the state’s casinos and its games, has raised concerns about the proposal, saying the game amounts to a raffle, although the proposal doesn’t use the term. A raffle would be against the rules and Alexa Henning, spokeswoman for Gov. Sarah Sanders, said state law doesn’t allow it.
Jim Hudson, secretary of the state Department of Finance and Administration that has oversight over the Racing Commission, has thrown cold water on the proposal.
Department spokesman Scott Hardin provided this statement today:
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 upcoming 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.”
Hudson’s use of the word “believe” in the statement could suggest the issue lies in a gray area that will require some interpretation.
Saffa, Saracen’s chief marketing officer, has been outspoken on the issue on X, formerly known as Twitter, as he has promoted the proposal.
Most important message of the day:
Prepare for more of this “NIL 50/50 isn’t legal” excuse.
You think we’d spend hundreds thousands in development & be this vocal if we weren’t 💯 confident it was legal?
Challenge any kind of “this ain’t legal” nonsense you read.
— 𝐂𝐚𝐫𝐥𝐭𝐨𝐧 𝐒𝐚𝐟𝐟𝐚 (@carltontsaffa) August 14, 2024
My understanding is that 🐗 🏈 needs an additional $600K a month EVERY month for football.
UAPB, ASU and UCA also have needs. And @SaracenCasinoAR has a way to help all.
Kick 🇨🇳 outta AR casino business
— 𝐂𝐚𝐫𝐥𝐭𝐨𝐧 𝐒𝐚𝐟𝐟𝐚 (@carltontsaffa) August 13, 2024
Get ongoing revenue for NIL#arpx
The webs on the issue are tangled. There’s Oaklawn Racing Casino Resort, the Hot Springs casino and racetrack, which competes against Saracen and has raised concerns about the proposal. Wayne Smith, general manager for Oaklawn, said in a statement to the Democrat-Gazette that the Hot Springs casino is opposed to iGaming but not opposed to raising money for the “athletic fund at the U of A.”
Oaklawn’s owner and president, Louis Cella, recently donated $500,000 to the Razorback Foundation, a nonprofit associated with Razorback athletics but separate from the NIL collective.
Oaklawn’s legal representation comes from the Friday Firm of which Kevin Crass is a partner. Crass was the executive director of Sanders’ transition team and is a member of the University of Arkansas Board of Trustees.
Well folks, mystery has been solved.
Word of $500K from @OaklawnRacing to the Foundation = “we don’t need NIL money anymore.”
+ This morning on The Buzz Oaklawn admitted they are against the Rule 5 change that includes online gaming & NIL drawings
🐗 Blocker identified#arpx
— 𝐂𝐚𝐫𝐥𝐭𝐨𝐧 𝐒𝐚𝐟𝐟𝐚 (@carltontsaffa) August 13, 2024
Saracen has prominently promoted its betting app with TV ads featuring former Razorback athletes, including Joe Kleine, U.S. Reed and Matt Jones. Saffa said on X that former football great Darren McFadden will be in an upcoming ad.
UA spokesperson Mark Rushing said in a written statement to the Dem-Gaz that online gaming regulations in Arkansas are under the purview of state officials and the university has not taken a position on the 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,” Rushing said. “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.”