Lawsuit Filed After Arkansas Casino Measure Rejected

Article by : Erik Gibbs Nov 11, 2024

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Cherokee Nation Entertainment (CNE) has taken legal action against Arkansas following a recent vote that nullified its license to build a casino in Pope County. CNE filed a lawsuit in federal court, asserting that the measure, approved by voters on Tuesday, infringes on its constitutional rights. They seek to prevent the amendment from being enforced before its scheduled activation on November 13, arguing it threatens their prior license and substantial investments.

The conflict originates from a 2018 Arkansas constitutional amendment, known as Amendment 100, which permitted casinos in four specific counties, including Pope County. While casinos have already opened in three of these locations, Pope County’s project, helmed by Cherokee Nation Entertainment, has faced numerous obstacles. 

CNE had invested heavily in the plans, intending to establish a large casino complex northeast of Russellville, featuring a 200-room hotel, a conference center, and an outdoor music venue. However, the new amendment has effectively revoked their authorization to operate in the county, threatening to derail their planned development entirely.

The amendment, labeled Issue 2, was backed heavily by the Choctaw Nation of Oklahoma, which operates a competing casino near the Arkansas border. Both the Cherokee and Choctaw Nations have invested substantial resources in the campaign surrounding the amendment, with combined spending exceeding $30 million. 

The Choctaw-backed group, Local Voters in Charge, argued that the measure reflects the will of Arkansas voters. Local Voters in Charge spokesperson Hans Stiritz criticized the lawsuit, claiming it disregards the voters’ choice and expressed confidence in the validity of Issue 2.

Arkansas Attorney General Tim Griffin also dismissed the lawsuit as “baseless,” vowing to vigorously defend the state’s decision. The amendment not only revokes CNE’s Pope County license but also mandates that the residents must directly approve future casino licenses of the county where they are proposed. Previously, applicants only needed letters of support from local officials.

CNE contends that its license for Pope County was issued legally under the 2018 framework and claims to have acted in good faith based on this initial authorization. Bart Calhoun, CNE’s attorney, emphasized the company’s commitment to protecting its rights and the investments made in the project. According to Calhoun, the casino project was developed under legally sound conditions, and CNE believes the abrupt shift in the rules unfairly penalizes them after they complied with all prior regulations.

The legal dispute highlights ongoing tensions within Arkansas as different factions vie for control of the lucrative gaming market. The outcome of this lawsuit will set a critical precedent for how The Natural State handles casino licensing and regulation moving forward.