Arkansas is looking to become first school to generate NIL from a casino.
Hogs looking to raise NIL money for their NIL collective, Arkansas Edge, thru 50/50 drawing via Saracen casino in Pine Bluff AR:
Saracen, which already sponsors certain Arkansas football games, could develop the technology to run off its BetSaracen app at a much cheaper price point than Arkansas Edge could.
“My conservative estimate is it would cost them at least a million dollars,” Saffa (Saracen officer and UA grad) said. Bet Saracen could leverage its pre-existing relationships, such as a geolocation partner and “know-your-customer-identity verification partner,” to help make the development more economic, Saffa added in the Saturday interview.
For its own tech, Arkansas Edge would have had to navigate “banking relationships with Visa, MasterCard, PayPal, Venmo, all of which are very expensive and require incredible amounts of lawyering,” he said, adding that simply running it would have taken “tens of thousands of dollars a week at least” in overhead.
So, through much of the last six weeks, Saracen honed a technology that would allow the Arkansas Edge to run a 50/50 drawing within an app that could generate millions for the Razorbacks over the course of a season.
A 50/50 drawing, sometimes known as a 50/50 raffle, is a fundraiser where half of the proceeds typically go to a non-profit or charity of choice. For example, if 5,000 tickets are sold at $5 each ($25,000 jackpot), Arkansas Edge could retain half of the proceeds ($12,500) and the winning Razorback fan would take home the other half ($12,500).
A few other points in the article:
▪︎ KC Chiefs use this to generate $200,000 - $300,000 per home game for charity.
▪︎ Hogs would have wider footprint than KC, for it anyone using the app who’s physically in the state of Arkansas.
▪︎ A drawing at all Hog football, basketball, and baseball games could generate millions, and Hogs would be first school doing this.
▪︎ It could start happening as soon as October if all the pieces fell into place ASAP. Indeed, Saffa was hopeful it could be ready to go for the 2024 opener vs UAPB.
▪︎ Obstacles include a drawing considered a “game of chance” and current AR state law does not allow such games of chance that would generate NIL funds to be conducted electronically. Amendments are in progress.
▪︎ Saracen has been contacted by other states who want to do this.
▪︎ Revenue sharing could be an issue, but NIL is thought to be an added amount to shared revenue per link in article.
Obviously, Hogs benefit initially if they get this before anyone else. But once other, larger states do this, some others will benefit more.
How will schools in states with no casinos address this? Will they scramble to mobilize to legalize casinos? Or wait for revenue sharing legalities to be finalized?
I believe Texas has 3 Native American casinos byt only allows slots and bingo. Would a 50/50 drawing be legal? If not, I know some would try to make it legal ASAP, just in case revenue sharing doesn't preclude it.
Hogs looking to raise NIL money for their NIL collective, Arkansas Edge, thru 50/50 drawing via Saracen casino in Pine Bluff AR:
Saracen, which already sponsors certain Arkansas football games, could develop the technology to run off its BetSaracen app at a much cheaper price point than Arkansas Edge could.
“My conservative estimate is it would cost them at least a million dollars,” Saffa (Saracen officer and UA grad) said. Bet Saracen could leverage its pre-existing relationships, such as a geolocation partner and “know-your-customer-identity verification partner,” to help make the development more economic, Saffa added in the Saturday interview.
For its own tech, Arkansas Edge would have had to navigate “banking relationships with Visa, MasterCard, PayPal, Venmo, all of which are very expensive and require incredible amounts of lawyering,” he said, adding that simply running it would have taken “tens of thousands of dollars a week at least” in overhead.
So, through much of the last six weeks, Saracen honed a technology that would allow the Arkansas Edge to run a 50/50 drawing within an app that could generate millions for the Razorbacks over the course of a season.
A 50/50 drawing, sometimes known as a 50/50 raffle, is a fundraiser where half of the proceeds typically go to a non-profit or charity of choice. For example, if 5,000 tickets are sold at $5 each ($25,000 jackpot), Arkansas Edge could retain half of the proceeds ($12,500) and the winning Razorback fan would take home the other half ($12,500).
A few other points in the article:
▪︎ KC Chiefs use this to generate $200,000 - $300,000 per home game for charity.
▪︎ Hogs would have wider footprint than KC, for it anyone using the app who’s physically in the state of Arkansas.
▪︎ A drawing at all Hog football, basketball, and baseball games could generate millions, and Hogs would be first school doing this.
▪︎ It could start happening as soon as October if all the pieces fell into place ASAP. Indeed, Saffa was hopeful it could be ready to go for the 2024 opener vs UAPB.
▪︎ Obstacles include a drawing considered a “game of chance” and current AR state law does not allow such games of chance that would generate NIL funds to be conducted electronically. Amendments are in progress.
▪︎ Saracen has been contacted by other states who want to do this.
▪︎ Revenue sharing could be an issue, but NIL is thought to be an added amount to shared revenue per link in article.
Obviously, Hogs benefit initially if they get this before anyone else. But once other, larger states do this, some others will benefit more.
How will schools in states with no casinos address this? Will they scramble to mobilize to legalize casinos? Or wait for revenue sharing legalities to be finalized?
I believe Texas has 3 Native American casinos byt only allows slots and bingo. Would a 50/50 drawing be legal? If not, I know some would try to make it legal ASAP, just in case revenue sharing doesn't preclude it.
