Cherokee Nation Entertainment Files Lawsuit Over Arkansas Casino Amendment

_{Cherokee Nation challenges Arkansas casino amendment to protect its Pope County license. (Image: Maxim Ermolenko / Alamy)}

Last week, Arkansas voters approved Issue 2, which proposed an amendment to the Arkansas Constitution that would repeal authorization for a casino destination in Pope County and require local votes on any future casino projects in the state. 

On Friday, Cherokee Nation Entertainment—the developers of the proposed Pope County casino—filed a lawsuit challenging that amendment.

According to the lawsuit, Cherokee Nation Entertainment (CNE) is arguing that the amendment violates its constitutional rights and is hoping to block it from going into effect on November 13.

Lawsuit Claims Violations of Constitutional Rights

CNE filed the lawsuit in a federal court in Little Rock in the hopes of preventing the enforcement of what would be Amendment 104 to the Arkansas Constitution. Voters passed Issue 2 by a comfortable margin, with 55.8 percent of voters for the amendment and 44.2 percent against it.

But while those voters ultimately made the call on Issue 2, the ballot initiative was really a battle between two tribes with warring gaming interests in the region.

While the Cherokee Nation was looking to build a casino in Pope County, having won the sole gaming license in the county earlier this year, the Choctaw Nation of Oklahoma, which operates a casino about 90 miles away from the site of the proposed CNE resort, funded a group known as Local Voters in Charge to get Issue 2 on the ballot. The two tribes spent a combined $30 million or more on the campaign over the proposed amendment.

The Election Day vote appeared to signal a win for the Choctaw Nation. However, the Cherokee Nation is hoping that it may still have a path to a Pope County casino.

“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,” CNE attorney Bart Calhoun said in a statement.

Along with alleging that the process by which the amendment was approved violated CNE’s rights, the lawsuit also questions whether voters knew what they were voting for.

“To put it simply, the voters had no idea, by looking at what was in front of them in the voting booth, that they were revoking CNE’s license or nullifying a government contract,” the complaint says.

Attorney General Says State Will Defend Results

However, Attorney General Tim Griffin said that he is prepared to defend the state and the results of the election, according to the Associated Press. Local Voters in Charge also expressed confidence that the vote on Issue 2 would not be overturned.

“This legal action to attempt to bypass the voice of Arkansas voters is not unexpected,” said Local Voters in Charge spokesperson Hans Stiritz. 

“But 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.”

While losing this lawsuit and seeing the new amendment added to the Arkansas Constitution would be a significant setback for CNE, it might not be the final death knell for a casino in Pope County. 

Seven counties voted against Issue 2, including Pope County, suggesting that there may be a path to getting another license and winning local approval for CNE’s proposed casino.

The proposed Pope County casino would be located on a plot just northeast of Russellville. The facility would include 1,200 slot machines, a 200-room hotel, and an outdoor concert venue as part of a $300 million complex.