The Student Union Activities Board is sponsoring the event for February 12. As of Thursday afternoon, nearly 500 participants had signed up on Facebook to take part.
Organizers said it includes the chance to "win some 'unique' prizes while having a good time, laughing, being entertained, and learning about safe practices."
Organizers told ABC11 the prizes included condoms, vibrators, other adult toys, and gag gifts.
But some students expressed displeasure that their activity money was being used to fund such an event.
"This is disgusting. The fact that the UAB thinks this is a good use of University money is a sad representation of our community," wrote one commenter on Facebook.
But other called it a great idea.
"Trying to make sex education interesting is not a poor use of the small amount of student fees used for this event," wrote another person.
In an interview with ABC11, Board President Lauryn Collier defended the event, saying it's a new innovative way to do safe sex education on campus - and possibly helping stop the spread of sexually transmitted diseases.
Collier also defended the amount of money spent - saying it comes to less than a penny per student.