Arkansas Supreme Court Denies Casino Hearing

The Arkansas Supreme Court will not hear oral arguments about a proposed constitutional amendment allowing casinos in Boone, Miller and Washington counties. The Committee to Protect Arkansas’ Values/Stop Casinos Now claimed the amendment's language was misleading and that Arkansas Wins in 2016, the group behind the measure, violated state law regarding canvassers.

The Arkansas Supreme Court recently denied a request for oral arguments in a lawsuit designed to block from the November 8 ballot a proposed constitutional amendment allowing casinos in Boone, Miller and Washington counties. The lawsuit was filed by the Committee to Protect Arkansas’ Values/Stop Casinos Now.

The group asked the high court to prevent state officials from counting any of the votes in favor of the constitutional amendment. It also challenged the language of the ballot title, which was approved by Attorney General Leslie Rutledge on June 1. In addition, group leaders said the ballot measure may mislead voters to believe sports betting would be allowed at the new casinos although federal law prohibits it. Also the lawsuit claims Arkansas Wins in 2016, the group behind the measure, violated state law regarding reporting canvassers.

After being granted a 30-day extension to gather the required voters’ signatures, Arkansas Wins in 2016 collected more than 100,000 signatures. But Protect Arkansas’ Values/Stop Casinos Now Chairman Chuck Lange said, “There are too many flaws in the way the signatures were gathered and too much uncertainty about how it affects our state’s ability to manage what kind of gaming we want in Arkansas. This amendment is not worthy to be included in our constitution and we believe it needs to be struck from the ballot.”

 Arkansas Wins spokesman Robert Coon said the lawsuit was “just an attempt by a group that has previously received millions of dollars from the gaming monopoly in Arkansas to restrict competition.”

Meanwhile, Arkansas Wins has begun airing TV ads statewide promoting the measure as a way to increase tourism and economic development. Interests from the construction, economic and financial sectors all support the amendment. So does Cherokee Nation Entertainment, which will manage the gaming operation and resort in Washington County.

On behalf of Arkansas Wins, Coon said, “Our intent, as we have stated since the outset of this campaign, has been for the casinos authorized by this amendment to be operated by well-established, credible firms in the gaming industry. The Cherokee Nation has a wealth of experience and solid track record in the gaming industry, and we’re excited about their involvement in this effort. Our agreement would give the Cherokee Nation the opportunity to own and/or operate the casino in Washington County, however neither outcome has been finalized at this time.”

Currently Arkansas allows a lottery that raises money for college scholarships, plus charitable bingo and electronic gambling at Southland Park Gaming & Racing in West Memphis and Oaklawn Park Racing & Gaming in Hot Springs, which both oppose the constitutional amendment. in a joint statement released by Protect Arkansas’ Values/Stop Casinos Now, Southland President and General Manager Troy Keeping and Oaklawn General Manager Eric Jackson said, “This is an open invitation to corruption and unimaginable forms of gambling. Worse, the people who live in communities where casinos will be located are being denied the right to vote on what they want in their own communities.”

In response, Coon said the tracks’ opposition is hypocritical. He noted the casinos would be subject to regulation by a new commission and any laws enacted by the legislature. “Arkansas does have a history and tradition when it comes to gaming, unfortunately our tradition is sending jobs, tourism and tax revenue to other states instead of keeping them here in Arkansas. Oaklawn and Southland know full and well the benefits that Issue 5 will bring to the state, but they’re putting their own profits before the best interests of Arkansans.”

Other opposition includes 40 state legislators, whose names were released on a list provided by the Committee to Protect Arkansas’ Values/Stop Casinos Now. They claim the measure does not make clear that it would effectively create a monopoly through the state’s constitution. That is, if voters approve the amendment, the casinos would be operated by three companies owned by supporters of the measure who could transfer their licenses to anyone they choose.

In addition, Democratic state Rep. Greg Leding expressed concern that one of the casinos would be built near the University of Arkansas campus in Washington County. “The idea that we would allow a 24-hour casino with 24-hour alcohol sales to be built on the back steps of our state’s flagship university I think is just a very bad idea,” Leding said.

Coon responded, “I think members of the legislature that are opposed to this, they will be excited when Issue 5 passes. We expect it will raise more money and tax dollars for the state of Arkansas than the existing facilities in West Memphis and Hot Springs.”

Republican Governor Asa Hutchinson is a known opponent of the casino proposal. “Even if you were going to have casino gambling in Arkansas, this is not the means to accomplish it,” Hutchinson said.