Arkansas: Saracen Casino's online gambling expansion proposal faces legal concerns

Two of Arkansas’s three casinos are fighting over a proposal to expand online gaming, according to an Arkansas Democrat-Gazette report. The new gambling vertical would help funnel money to college athletes.

Saracen Casino Resort in Pine Bluff aims 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. 

However, 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 does not use the term. A raffle would be against the rules and Alexa Henning, spokeswoman for Gov. Sarah Sanders, said state law does not allow it. 

Jim Hudson, Secretary of the State Department of Finance and Administration who has oversight over the Racing Commission, has thrown cold water on the proposal. 

Department spokesman Scott Hardin explained that 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 a 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.

However, the Racing Commission has not discussed the initial proposal to expand to online gaming or the addition of the raffle, and the issue is not on an upcoming agenda, according to Hardin. 

Hudson said: “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.”

According to the report, Hudson’s use of the word 'believe' in the statement could suggest the issue lies in a gray area that will require some interpretation. Carlton Saffa, Saracen’s Chief Marketing Officer, has been outspoken on the issue on X, formerly  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.

🐗#arpx

— 𝐂𝐚𝐫𝐥𝐭𝐨𝐧 𝐒𝐚𝐟𝐟𝐚 (@carltontsaffa) August 14, 2024

Oaklawn Racing Casino Resort, the Hot Springs casino and racetrack that competes against Saracen, has also 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.”

UA spokesperson Mark Rushing said in a written statement to the Democrat-Gazette 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.”