Arkansas Edge, the University of Arkansas’ NIL Collective, is exploring the organisation of raffles as a means to generate additional funds.

Across the United States, college sports are funded by what are known as NIL collectives. These collectives typically consist of independent organisations that raise money for universities and athletes, enabling them to benefit based on their performance.

However, college sports lack a players’ union, meaning there is no clear path to implementing a salary cap. This creates a constant need for fundraising and pushes colleges to explore various methods of securing those funds.

In one such initiative, the University of Arkansas’ NIL Collective, Arkansas Edge, is seeking to secure additional funding by organising a 50/50 raffle. The collective has recently partnered with Saracen Resort, a popular casino.

The collaboration aims to introduce a 50/50 raffle for Razorback fans that will benefit the NIL collective. Raffles are a common fundraising method, typically designed to benefit both the raffle winner and an organisation involved in charitable activities.

Under the agreement with Saracen Resort, Arkansas Edge plans to utilise the casino’s online ticket sales platform. This approach is expected to increase participation in the raffle, thereby boosting funding for college athletes.

Challenges Ahead for the Fundraising Plan

But why is additional funding so crucial for Arkansas Edge? Increased support for the NIL Collective is expected to benefit the athletes. At present, Arkansas Edge has “pay-for-play” agreements with athletes based on their abilities and performance.

With additional funds, the University will be better positioned to recruit new talent and retain existing athletes.

However, while the partnership between Saracen Casino and Arkansas Edge appears straightforward, it may face significant challenges. The state of Arkansas has strict regulations regarding the organisation of raffles. According to Arkansas’ Charitable Bingo and Raffles Act, an organisation must hold charity status for five years before it is permitted to hold a raffle.

As Arkansas Edge was established only in 2023, it does not meet this requirement. Furthermore, the NIL Collective is not recognised as an organisation with a charitable purpose.

This places Arkansas Edge’s proposal in a difficult position, as one way to achieve its goals would be through changes to the current laws.

Alternatively, the NIL Collective is considering the possibility of reclassifying the raffle as a “NIL drawing game.” This approach might enable Arkansas Edge to comply with regulations while still benefiting from the additional funding.