New Legal Challenge to Arkansas Casino License Award in Pope County Emerges

Article by : Erik Gibbs Jul 8, 2024

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Arkansas thought it was done with the years-long legal battle to award a casino license for Pope County. However, on July 2, Gulfside Casino Partnership initiated legal action challenging the recent decision to award the Pope County casino license to Cherokee Nation Entertainment (CNE). The lawsuit asserts that the required letters of support from the local government were “coercively issued.”

This marks the third lawsuit pertaining to the Pope County casino license since Arkansas voters approved Amendment 100 in 2018, which permitted casino gaming in the state. Last week, the Arkansas Racing Commission granted the license to Cherokee Nation Entertainment.

Bart Calhoun, legal counsel for CNE, remarked that the ongoing litigation delays the economic benefits and job creation that the state’s fourth casino license, approved by voters in 2018, would bring. Calhoun underscored CNE’s dedication to defending its position as the designated license holder and operator for Pope County.

The lawsuit, filed by attorneys Lucas Rowan and Kenneth Castleberry in Pulaski County Circuit Court on behalf of Gulfside Casino Partnership, lists several defendants, including Cherokee Nation Businesses, Cherokee Nation Entertainment, Pope County Judge Ben Cross, the Pope County Quorum Court, and the Arkansas Racing Commission.

The plaintiffs seek to invalidate Cherokee Nation Businesses’ Economic Development Agreement (EDA) and all related letters and resolutions of support, claiming these were coercively obtained.

Under the Arkansas Declaratory Judgment Act, Gulfside’s complaint contends that the EDA imposes an exclusivity requirement on local officials to support CNE alone in exchange for monetary payments. This exclusivity, the lawsuit argues, jeopardizes Pope County’s potential benefits if another proposal were to be endorsed.

Gulfside had presented its own EDA to the Pope County Quorum Court on June 6, which did not include an exclusivity clause, but the quorum court rejected Gulfside’s proposal in a split decision.

Gulfside further argues that the exclusivity clause contradicts Amendment 100, which mandates a letter of support but does not restrict it to a single candidate. The lawsuit alleges that local officials leveraged their positions to support CNE exclusively, thereby undermining the Arkansas Racing Commission’s authority.

Consequently, the lawsuit calls for the court to invalidate CNE’s letters of support, effectively voiding their license application as it would not meet the required criteria without these letters.

Lucas Rowan, one of Gulfside’s attorneys, stated that the exclusive 2019 agreement between the Cherokees and Pope County leadership precluded consideration of Gulfside or other applicants.

Rowan emphasized that Gulfside’s proposal was superior in terms of economic development, job creation, total investment, square footage, gaming options, hotel accommodations, and amenities.

In a related statement, Jason Sauer of Churchill Downs recounted to the Arkansas Racing Commission their experience with Judge Cross, who indicated that the quorum court would not consider any applicant other than Cherokee Nation, despite favorable meetings. This narrative adds to the contention that the process was unfairly skewed towards CNE.

The case has been assigned to Judge Tim Fox, but as of Wednesday, no hearing date has been scheduled. Scott Hardin, a spokesman for the Arkansas Racing Commission, mentioned that the lawsuit does not currently halt CNE from advancing their project unless a judicial ruling intervenes.

Hardin noted the constant litigation surrounding the Pope County license since the approval of casino gaming in 2018, a situation not observed with the other three operational casinos in the state.