A report commissioned by the political group Driving Arkansas Forward found the state could gain $5.8 billion and add more than 6,000 new jobs over the next 10 years if voters pass Issue 4 on the November ballot. The proposed constitutional amendment would authorize a casino to be operated by the Oaklawn Jockey Club in Hot Springs, another by Southland Racing Corporation in West Memphis, and two operators to be determined in Jefferson and Pope counties. The Arkansas Racing Commission would regulate licensing and operation of the casinos.
The study was conducted by the Arkansas Economic Development Institute at the University of Arkansas at Little Rock.
Driving Arkansas Forward attorney Nate Steel said, “Voting ‘yes’ on Issue 4 means Arkansas can keep its money, its jobs and its tax revenue in Arkansas rather than sending money to surrounding states, and it means Arkansas’s economy will reap benefits even more far-reaching than many of the industrial super-projects we recruit to the state with public money. These privately financed casino resorts will employ Arkansas residents, pay Arkansas taxes and generate billions of dollars of economic growth for Arkansas.”
AEDI Chief Economist Dr. Michael Pakko said the study “represents a thorough investigation of the likely impact of Issue 4 on the state’s economy. We applied a dynamic regional economic model to projections of casino revenues, growth and construction activity to investigate both the direct and indirect effects of expanding the gaming sector in Arkansas. Not surprisingly, when you have an economic activity that is prohibited within the state but is available in nearby states, bringing that activity home has the effect of raising total income, spending and employment within Arkansas.”
Driving Arkansas Forward noted the Mississippi Gaming Commission has estimated 1.149 million Arkansas residents visited the state to gamble last year.
Under the proposal, each of the four cities and counties also would receive 13 percent on the first $150 million in gambling revenue, and 20 percent on revenue exceeding $150 million. Fifty-five percent of revenue would go to the Arkansas general revenue fund; 19.5 percent to the host city; 17.5 percent to the commission; and 8 percent to the host county.
