On March 13, 2025, the Arkansas State Legislature introduced House Bill 1634, aimed at regulating the conduct of raffles within the state. The bill seeks to clarify the legal framework surrounding raffles, particularly those organized by qualifying charitable organizations, and to ensure compliance with existing state laws regarding gambling.

Key provisions of HB1634 include a stipulation that third parties are prohibited from conducting or administering raffles on behalf of qualifying organizations. This measure is intended to maintain the integrity of charitable fundraising efforts and ensure that proceeds directly benefit the intended causes. The bill also reaffirms that all raffles conducted under this chapter will be governed by Amendment 84 of the Arkansas Constitution, which outlines the legal parameters for gambling activities in the state.

The bill amends several sections of the Arkansas Code to clarify exceptions related to gambling violations. Specifically, it updates definitions to ensure that charitable bingo and raffles, as well as lotteries under the Arkansas Scholarship Lottery Act, are not classified as illegal gambling activities when conducted in accordance with the law. This clarification is crucial for organizations that rely on these fundraising methods to support their missions.

Debate surrounding HB1634 has focused on the implications of restricting third-party involvement in raffles. Proponents argue that this will enhance transparency and accountability, ensuring that funds raised are used appropriately. However, some opponents express concern that such restrictions may limit the ability of smaller organizations to effectively fundraise, as they often rely on third-party expertise to manage these events.

The economic implications of HB1634 could be significant, particularly for charitable organizations that depend on raffle proceeds. By tightening regulations, the bill aims to foster a more trustworthy environment for fundraising, potentially increasing public confidence in charitable activities. However, if the restrictions are perceived as overly burdensome, there may be a negative impact on the volume of funds raised.

As the bill progresses through the legislative process, stakeholders are closely monitoring its developments. Experts suggest that if passed, HB1634 could set a precedent for how charitable fundraising is conducted in Arkansas, influencing similar legislation in other states. The outcome of this bill may ultimately shape the landscape of charitable gaming in Arkansas, balancing the need for regulation with the necessity of supporting local organizations.