The 20-year-old sophomore was charged with two counts of first-degree assault and was being held Sunday night the Calloway County jail.
Police arrested Jackson around 4 p.m. following an altercation in the parking lot where he hit two people with his white Monte Carlo, causing minor injuries.
An arraignment was scheduled Monday morning.
Jackson was a reserve who averaged 4.9 points, 2.3 assists and 2.1 rebounds as a freshman. He was projected to start this year for Murray State, which went 31-2 and beat Colorado State in its NCAA tournament opener last March. The Racers lost to Marquette in the next round.