Arkansas Enacts New Alcohol Laws for Private Clubs Hosting Tournaments

Arkansas private clubs are poised for significant changes following the introduction of House Bill 1455 on February 11, 2025. This legislative proposal aims to expand the operational capabilities of private clubs regarding the sale and service of alcoholic beverages, particularly during special events like professional and charitable golf tournaments.

The bill allows private clubs to serve alcoholic beverages on their golf courses during sanctioned events, provided they notify the Alcoholic Beverage Control Division at least 60 days in advance. This provision not only enhances the experience for guests but also opens new revenue streams for clubs, as they can serve drinks for cash during these events. Additionally, the bill introduces a framework for private clubs to enter into operating agreements with other permit holders, potentially streamlining management and operations.

Another key aspect of HB1455 is the amendment to the supplemental tax structure. The bill proposes a 10% tax on gross proceeds from charges related to the preparation and serving of mixed drinks and other alcoholic beverages consumed on the premises. This tax aims to ensure that private clubs contribute fairly to state revenues while still providing a unique social environment for their members.

The introduction of this bill has sparked discussions among lawmakers and stakeholders. Proponents argue that it will boost local economies by attracting more events and visitors to Arkansas private clubs, while critics express concerns about the potential for increased alcohol consumption and its associated risks.

As the bill moves through the legislative process, its implications could reshape the landscape for private clubs in Arkansas, enhancing their role in community events and potentially increasing their financial viability. The outcome of this legislation will be closely watched, as it may set a precedent for similar initiatives in other states.