Pope County Quorum Court votes against support letter for Gulfside Casino

The Pope County Quorum Court on Thursday (June 6) voted against a letter of support for a $405 million casino plan presented by the Gulfside Casino Partnership. The rejection adds a hurdle in Gulfside’s effort to acquire a state license to build and operate the county’s casino.

The letter of support was sought by Gulfside to include in its application to the Arkansas Racing Commission in pursuit of the Pope County casino license.

Quorum Court members voted 7-5 against the letter of support after presentations from officials of Gulfside and Cherokee Nation Entertainment.

“For the past five years, we have been laying the groundwork for this one-of-a-kind, shovel-ready commercial casino resort and becoming engrained in the local community. We are honored to have garnered the required support of Pope County leaders, purchased 325 acres of land, and obtained a Large-Scale Development permit from the City of Russellville. With the application now submitted, we are eager to present our plans and vast experience to the Arkansas Racing Commission and earn the state’s final casino license,” Chuck Garrett, Cherokee Nation Entertainment CEO, noted in a statement sent to Talk Business & Politics after Tuesday’s vote.

Talk Business & Politics also asked for comments from Gulfside after the vote. This story will be updated when/if comments are received.

CASINO LICENSE BACKGROUND
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.

Gulfside was initially awarded the Pope County license, but lost the license in a legal dispute with Cherokee Nation. The Arkansas Supreme Court ruled in October 2021 that Gulfside did not have a required official letter from an elected official during the active part of the application process, while Cherokee Nation did. Gulfside had relied on a letter from the previous county judge, who was no longer in office when the application was submitted.

The Arkansas Supreme Court ruled Jan. 11 it would not rehear a lower court decision that blocked granting of a casino license in Pope County to CNB. The rehearing denial returned the license process back to the Arkansas Racing Commission (ARC). The application deadline for a Pope County casino is June 11.

THE GULFSIDE PLAN
Gulfside unveiled its $405 million plan May 29 that includes a $65 million payment to Pope County with a $2 million annual commitment to the county for economic development purposes. The Gulfside proposal would also provide economic development funds for Russellville, the county seat of Pope County, and other county towns.

According to Gulfside, the casino resort will include 300 hotels rooms, convention center space with meeting rooms, a steakhouse restaurant, a casino lounge, a 24-hour cafe, an outdoor amphitheater, a spa and fitness center, and a coffee and pastry shop. Gulfside estimates that the 20-acre project will create 1,695 direct jobs, a projected $60.5 million annual payroll for the region, and result in an estimated $29.5 million in annual tax revenue. Also as part of the proposed deal, Gulfside said it would spend nearly $15 million in five other Pope County cities, fire departments, and education-related and arts nonprofits.

“Our proposed River Valley Casino Resort will redefine regional tourism with 70,000 square feet of unparalleled gaming space, 1,500 state-of-the-art slot machines, 50 table games and a dedicated sportsbook, among other world-class amenities. This high-end destination will drive economic development in the region and be an employer of choice, fostering a thriving community for generations to come,” Terry Green, co-owner of Gulfside, said in a statement.

Gulfside owns the Island View Casino Resort in Gulfport, Miss., that employs around 1,840 in its gulf coast gaming and hotel operations.

THE CHEROKEE PLAN
Cherokee Nation Entertainment, the competitor to Gulfside, presented its Pope County casino license application to the Arkansas Racing Commission on June 5.

“Our more than $300 million project is not just an idea; it is a full-fledged economic development plan that has been in the works for over five years with the required support of Pope County leaders,” noted CNE President Mark Fulton. “We own more than 325 acres of land and have obtained our Large-Scale Development permit from the City of Russellville. Our shovel-ready development positions us to be open and operating more than a year ahead of any other proposals. Legends Resort & Casino is a world-class entertainment destination that will bring thousands of jobs to Pope County and provide more than $5 billion in economic impact over the first 10 years.”

CNE’s proposed development plans in Pope County include a 50,000-square-foot casino with 1,200 slot machines, 32 table games, a poker room and sportsbook, a 200-room hotel with a resort pool and luxury spa, numerous dining options ranging from grab-and-go to a sit-down steakhouse, and a multipurpose space to accommodate meetings, conferences, concerts and special events.

The development site is situated northeast of Russellville on land located just north of Interstate 40 between the Weir Road exit to the west and Bradley Cove Road exit to the east.

NEXT STEPS
Deadline for Pope County casino applications is June 11, and the Arkansas Racing Commission will meet 11 a.m., June 12, in Little Rock to begin the application review process. The license has to be awarded within 30 days of the application deadline.

“Under the rules, the Commission is required to issue the license within 30 days of the application period closing,” said Scott Hardin, spokesperson for the Department of Finance and Administration, the parent agency of the Arkansas Racing Commission. “Barring any surprising, significant legal issue, the Pope County license will be issued by mid-summer. The Commission has been vigilant leading up to this application period and throughout it to ensure the process ends with the license issued as required by Amendment 100.”

According to Amendment 100 rules, commissioners will each judge the applicants on a 100-point scale. Following is the scoring breakdown for the application.
• 30 points: Experience conducting casino gaming
• 30 points: Proof of financial stability and access to financial resources, including but not limited to legal sources of finances immediately available to begin operating a casino
• 30 points: Detailed summary of proposed casino including hotel, amenities, projected number of employees, and any other information the casino applicant deems relevant
• 10 points: Timeline for opening a casino

Complicating the issue is the potential for a constitutional amendment on the November general election ballot that would block a casino in Pope County. Arkansas Attorney General Tim Griffin on March 20 approved the ballot title for a potential constitutional amendment that would allow Arkansas voters to repeal the Pope County casino license. With Griffin’s approval, supporters of the measure, Local Voters in Charge, can collect the more than 90,000 signatures to qualify for the November ballot.

In addition to removing the casino license provision in Pope County, the planned amendment would require the quorum court of each county where a casino is to be located to call a special election to submit the question of whether to approve of a possible casino in the county. It would also require a majority of those in the county who vote at the election where a future casino is proposed to be located “to approve of the casino at the special election before the Arkansas Racing Commission, or other governing body, may accept any applications for a casino license in that county.”