Efforts to Block New Arkansas Casino Gain Ground

Article by : Erik Gibbs Aug 2, 2024

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A proposal to block the development of a planned casino in Arkansas has officially qualified for the November ballot. Election officials confirmed yesterday that supporters had submitted more than enough signatures to move forward. The group behind the initiative, Local Voters in Charge, garnered at least 116,200 valid signatures from registered voters, surpassing the required 90,704.

The proposed constitutional amendment aims to revoke the license granted to a casino in Pope County, which has faced legal challenges for several years. Pope County was designated as one of four locations for casinos under a 2018 constitutional amendment approved by voters. Casinos have already been established in the other three locations.

Hans Stiritz, a spokesperson for Local Voters in Charge, emphasized the public’s stance against forced casino establishments in unwilling communities. “In record numbers, Arkansas voters have stated the obvious – casinos should not be forced into communities that do not want them,” Stiritz stated. “Our state’s motto ‘Regnat Populus’ – ‘The People Rule’ – is a promise that we can fulfill by supporting Local Voter Control of Casino Gambling in November.”

This casino initiative has significant financial backing, particularly from the Choctaw Nation of Oklahoma, which has contributed at least $5.3 million to the campaign. On the opposing side, Cherokee Nation Businesses has donated $775,000 to the Investing in Arkansas campaign, which aims to defeat the measure. Natalie Ghidotti, Vice Chairman of Investing in Arkansas, criticized the initiative as a maneuver by the Choctaw Nation to alter the Arkansas constitution for its own business interests in another state.

The Pope County casino issue remains a contentious topic. Despite the approval of Amendment 100 in 2018, which allows for four casinos in Arkansas, including Pope County, the process has been fraught with legal and political challenges.

Cherokee Nation Entertainment (CNE) was selected to receive the Arkansas gaming license after a third round of applications. However, Gulfside Casino Partnership of Mississippi, a losing contender, has filed a lawsuit alleging that local officials unduly influenced the selection process in favor of CNE.

The lawsuit claims that the Arkansas Racing Commission (ARC) chose CNE under duress from county officials, despite Gulfside’s superior application. Pope County Judge Ben Cross, a known supporter of CNE, is named in the lawsuit. Cross and the Pope County Quorum Court provided letters of support for CNE’s application, which played a crucial role in securing the license.

The ARC awarded the license to CNE on June 27, paving the way for the construction of the $300 million Legends Resort and Casino. Federal law allows such disputes to be heard in federal court, and the Eastern District of Arkansas has accepted the case, assigning it to District Judge Lee Rudofsky. However, there remains a possibility that the case could be returned to the Pulaski County court.

Gulfside’s lawsuit contends that Amendment 100 does not restrict county officials to support only one applicant. It cites an instance where Churchill Downs Inc. expressed interest in Pope County but was discouraged by local officials from pursuing their application. Gulfside also argues that an Economic Development Agreement between CNE and county officials compromised the impartiality of their support.