Arkansas Regulators Draft Casino Rules

Arkansas Racing Commissioners soon will draft regulations regarding expanded casinos at existing racetracks, like Southland Park (l.) in West Memphis, and new casinos in Jefferson and Pope counties. Following a public comment period, lawmakers and the governor must approve the rules. Commissioners could enact emergency rules so casinos could start construction, and begin generating tax revenue, sooner.

Arkansas Regulators Draft Casino Rules

The Arkansas Racing Commission has until March 14 to draft rules and regulations for the state’s expanded and new casinos. In a statewide referendum held last month, voters approved Issue 4, a constitutional amendment legalizing casinos in four counties. The casinos include Southland Gaming and Racing in West Memphis and Oaklawn Racing and Gaming in Hot Springs, which both have electronic gambling and now can expand into full-fledged casinos. In addition, voters approved new casinos in Jefferson and Pope counties.

Once the commission approves a draft of the operating regulations, a public comment hearing will be scheduled. Then the commission will finalize the rules and forward them to state legislators, the governor and the state Department of Finance and Administration.

The new legislation also requires letters of support for developers to receive a license. Jefferson County officials already have written letters of support for Downstream Development Authority of the Quapaw Tribe to build the proposed Saracen Casino Resort in Pine Bluff.

Commissioners discussed adopting emergency rules that would allow prospective casinos to start construction sooner. Downstream Development Authority Attorney Alex Gray said if the application process were expedited, his group could break ground early next year. He noted as soon as the rules are approved, casinos can begin to generate tax revenue for the state and local communities.

But racing commission Chairman Alex Lieblong cautioned against moving too quickly, since the public is watching to make sure the casino expansion moves smoothly. He recommended the commission review the application rules before it meets again later this month, at which time it could vote on whether or not to use the emergency rules. “We are not whatsoever trying to be a roadblock. We’re just trying to make sure that it’s done in the fairest possible way for Arkansas,” he said.

Quapaw Chairman John Berrey said he hopes to have a permit for the Pine Bluff casino by the end of April, to be “digging dirt” by June and to open a casino in Pine Bluff early in 2020. Berrey said he hopes his 5-year history of working with Pine Bluff officials will give his group an edge when a casino developer is chosen.

Berrey noted the tribe has not officially selected the location of the potential casino, but it has an option on land on the southwest side of the city, and some acreage outside the city would be voluntarily annexed. He said the tribe would develop 180-220 acres at first.

The Arkansas legislature is expected to pass enabling legislation to enact the new casino amendment during the session beginning in January. But Berrey noted the amendment was specifically written to limit legislative revisions.

Berrey said the tribe’s Downstream Casino outside Joplin, Missouri took 10 months to build. He anticipates a casino and restaurant could be operating in Pine Bluff in the first quarter of 2020. A hotel will take longer to complete. The casino will offer gambling options, including a sports book, Berry said.

Noting the Pine Bluff and Little Rock areas are historic Quapaw homelands, Berrey said, “We’re about building communities. Our goal is to make it a better place for people to live. Better environment, better houses, better lifestyles, better education for our kids, stronger law enforcement.”

The casino will create several hundred jobs in the next 12 months, including construction workers, dealers, restaurant and hotel workers, Berry said. “You know dealers can make over $100,000 a year with tips and with their base pay,” he commented.