A subsidiary of the Cherokee Nation of Oklahoma filed a federal lawsuit last Friday alleging that its constitutional rights have been violated by a statewide gaming referendum in Arkansas.
Last week, Arkansas voters approved Issue 2 with 56% support. The ballot referendum repeals a commercial casino license earmarked for Pope County that was awarded to Cherokee Nation Entertainment in June. The Cherokees had planned to invest $300 million in Russellville to build Legends Resort & Casino.
Issue 2 repealed the license on grounds that local voters in Pope County didnât approve of a casino undertaking in 2018 when a statewide referendum authorized commercial casinos in the counties of Crittenden, Garland, Jefferson, and Pope. Issue 2 further amends the Arkansas Constitution to require that casino licenses only be allocated to counties where a local referendum in support of slot machines, table games, and sports betting is attained.
Back to CourtÂ
The Pope County casino license has been tied up in courts for years. While the three casinos in Crittenden, Garland, and Jefferson have since opened, the Pope project failed to break ground more than six years after Arkansans initially authorized a casino there in 2018.
After years of legal wrangling, the Arkansas Racing Commission (ARC) determined in June that only the Cherokeesâ bid for the Pope County gaming concession qualified for review, and therefore, was deemed the winner. With Issue 2 repealing the license effective November 13, the Cherokeesâ legal team is contesting the referendumâs implications.
Filed in Arkansasâ Eastern District Court, the Cherokees allege the referendum infringes on their constitutional rights.
Cherokee Nation Entertainment is firmly committed to protecting its constitutional rights, defending its lawfully issued casino license, and safeguarding the substantial investments it made in good faith based on the establishment of the Pope County casino license under Amendment 100 in 2018,â Bart Calhoun, an attorney for Cherokee Nation Entertainment, said in a statement.
The Cherokee Nationâs costs in its pursuit to open a commercial casino in Arkansas have been substantial. The tribe spent $12.5 million in unsuccessfully trying to defeat Issue 2. Its legal fees over the past six years amount to many millions more.
The tribeâs legal complaint seeks declaratory relief that the amendment be held unconstitutional and that a temporary restraining order and preliminary injunction preventing the amendment from taking effect on Wednesday be granted.
Baseless ComplaintÂ
Arkansas Attorney General Tim Griffin said he wasnât surprised by the Cherokee filing. The stateâs top attorney said his office is prepared to defend the amendment and called the allegations made by the Cherokees âbaseless.â
Hans Stiritz, a spokesperson for Local Voters in Charge, the political campaign bankrolled by the Choctaw Nation of Oklahoma that was behind the Issue 2 amendment, echoed Griffinâs opinion.
This legal action to attempt to bypass the voice of Arkansas voters is not unexpected,â said Stiritz. âBut we are fully confident in the process that brought Issue 2 to the ballot. Arkansas voters have spoken clearly on Issue 2 and we expect it to stand.â
Unlike in 2018 when voters in Pope County opposed the gaming push, the county last week opposed Issue 2, meaning a majority of the electorate there now supports housing a casino in the county.
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