Arkansas Racing Commission Denies Appeal

The Arkansas Racing Commission rejected an appeal from Gulfside Properties, which wants to develop a Pope County casino (l.). Gulfside's application included letters of approval from previous county and city office holders; the present officials oppose Gulfside's proposal. Currently the Cherokee Nation has the inside track with its proposed $225 million Legends Resort and Casino.

Arkansas Racing Commission Denies Appeal

The Arkansas Racing Commission recently denied an appeal from Mississippi-based Gulfside Properties seeking to develop a casino in Pope County. The commission had rejected Gulfside’s license application which included letters of approval from the former Pope County judge and Russellville mayor. The current holders of those positions oppose the proposed Gulfside casino.

Gulfside’s attorney Casey Castleberry said, “The Administrative Procedures Act requires that you go through this step before you can seek judicial review, so that’s what we’ve done today. And now we’ve filed a complaint with Pulaski County Circuit Court, seeking a review of the Racing Commission’s decision.”

The commission then moved to re-open the application process for 90 days, giving other casino developers the opportunity to obtain letters of support from current Pope County officials. Currently, the Cherokee Nation, partnering with a hospitality company owned by Dallas Cowboys owner Jerry Jones, is the only company that has the support of current local officials. “While this will open up another application window for potential casino vendors, no other considerations will be accepted by members of the Pope County Quorum Court,” Pope County Judge Ben Cross said.

But Cherokee Nation Attorney Scott Richardson said the application process should be reduced to 10 days. “Ninety days is too long and it’s not necessary. It would unduly delay the construction of the Legends Resort and Casino in Pope County.”

The proposed $225 million Legends Resort and Casino, which would be built north of Russellville and Interstate 40, would include a 50,000-square-foot gambling floor with 1,200 slot machines and 32 table games, plus a sportsbook. It also would feature a 200-room hotel and conference center. If approved, the project, the first Cherokee Nation gaming venture outside Oklahoma, would create 1,000 new jobs.

Pope County officials endorsed the Cherokee proposal even though a county ordinance requires officials to seek voter approval before backing a casino proposal. However, Cross said, “I would not allow anything to go to the racing commission without an ironclad contract agreement because it’s my job to protect Pope County.” He said after any and all legal and administrative challenges to the commission granting Cherokee Nation Business a casino license are resolved, CNB would pay a $38.8 million “economic development fee” which would be distributed among 17 different entities, including some cities in Pope County, nonprofit organizations and education foundations.

Last November, Arkansas voters approved Amendment 100, legalizing one casino in Pope and Jefferson counties, plus expanded gambling at West Memphis and Hot Springs racetracks. However, in Pope County, voters rejected Amendment 100 and approved a county ordinance requiring an election to decide if officials should be allowed to support a casino.

Besides Gulfside, the Racing Commission denied casino license applications from Kehl Management of Iowa; Warner Gaming of Nevada; and Choctaw Nation Division of Commerce of Oklahoma—all because they lacked the required letters of support from current officials. Only Gulfside appealed the denial.