Pope County casino license back in the hands of the Arkansas Racing Commission

The Arkansas Supreme Court ruled Thursday (Jan. 11) it will not rehear a lower court decision that blocked granting of a casino license in Pope County to Cherokee Nation Businesses. The rehearing denial officially sends the license process back to the Arkansas Racing Commission (ARC).

Pulaski County Circuit Court Judge Tim Fox ruled in January 2023 that Arkansas officials “unconstitutionally” granted a casino license to Cherokee Nation Businesses. Gulfside Casino Partnership had appealed a November 2021 decision by the ARC to grant the Pope County license to Cherokee Nation Businesses and its Legends Resort and Casino company.

The Cherokee Nation proposal was approved in a narrow 3-2 Racing Commission vote after the Arkansas Supreme Court ruled ineligible the Gulfside Casino Partnership proposal in late October 2021. The state’s high court ruled that Gulfside did not have an official letter from an elected official during the active part of the application process, while Cherokee Nation did.

Judge Fox noted in his 6-page ruling that the ARC acted outside its authority and did not follow the rules of Amendment 100 – the voter-approved amendment allowing four casino operations in Arkansas – in granting the license to Cherokee Nation.

Pope County Judge Ben Cross, who supports the Cherokee Nation’s casino plan, said Thursday the court’s rehearing denial now allows the ARC a “clean slate” to review applications and he hopes the process moves “quickly and efficiently.”

“I regard this decision as the clearest path forward to allow the Arkansas Racing Commission to act immediately to establish a new application period pursuant to their rules.  The high court’s decision effectively ended any form of litigation or questions remaining regarding the casino issue over the past five years, so I look at this optimistically as a “clean slate” for the Racing Commission to act unencumbered by litigation,” Cross noted in a statement. “The Commission will now have the opportunity to act expeditiously on the only qualified applicant with Cherokee Nation Entertainment having the only constitutionally mandated qualifications to secure licensure.  With my support, and the Resolution of Support passed by the Pope County Quorum Court, it is my sincere hope the Commission acts quickly and efficiently to award the license as mandated by the Constitution.”

Casey Castleberry, an attorney for the Gulfside Casino Partnership, said they will seek to change the minds of Pope County officials.

“We are pleased the Arkansas Supreme Court affirmed its recent decision that the license issued to Legends and CNB was null and void. We now await guidance and next steps from the Arkansas Racing Commission, the state’s governing body on gaming, as to how and when it will receive and consider applications. We look forward to demonstrating to the Pope County Quorum Court why Gulfside is worthy of the county’s support,” Castleberry noted in a statement.

The Cherokee Nation Businesses provided the following statement from CEO Chuck Garrett: “As the only qualified applicant with the exclusive support of Pope County Judge Ben Cross and the Pope County Quorum Court, we are eager to see the Arkansas Racing Commission and the Arkansas Attorney General’s office determine the next steps in fulfilling Amendment 100. We are prepared to once again demonstrate our 30 plus years of experience in gaming and hospitality to the Arkansas Racing Commission and move forward with building Legends Resort & Casino, bringing much-needed economic growth to the community and state.”

The initial Cherokee Nation casino proposal was estimated to cost $225 million and include 50,000 square feet of gaming space accommodating 1,200 slot machines and 32 table games, a sportsbook located within a high-end sports bar, a luxury hotel with 200 rooms with a resort-style pool, spa and fitness center, 15,000 square feet of mixed-use conference and entertainment space accommodating 1,000 people, and an outdoor water park and music venue.

In it’s initial proposal, Gulfside presented a $254 million that would include 500 hotel rooms, 80,000 square feet of gaming space, dining options and outdoor entertainment space. The casino would add 1,500 jobs in the region and have a $60.5 million annual payroll.

Amendment 100 was approved in 2018 by Arkansas voters. It established The Arkansas Casino Gaming Amendment, which requires the Racing Commission to issue licenses to Oaklawn Jockey Club in Hot Springs, Southland Racing Corporation in West Memphis, and to entities in Pope County and Jefferson County. Casinos in three counties are operational: Oaklawn Racing Casino Resort in Hot Springs, Southland Casino Racing in West Memphis and Saracen Casino Resort in Pine Bluff.