It is now up to the Arkansas Supreme Court to determine who will get to build a casino in Pope County, Arkansas.
The Arkansas Racing Commission awarded the license to Gulfside Casino Partnership, which would build a $254 million River Valley Casino Resort. But Cherokee Nation Businesses filed a lawsuit over that decision.
Gulfside Counsel Casey Castleberry said, “We are optimistic the Arkansas Supreme Court will affirm the Circuit Court’s decision, so we can immediately begin construction of our $254 million River Valley Casino Resort. The lawsuit before the Supreme Court goes to our qualifications as an applicant. While we have had a casino gaming license since July of 2020, we knew this issue would have to be decided by the high court. We are happy that the issue has made it to the court so quickly, and we look forward to the Court’s ruling. The case before the Arkansas Supreme Court is the only reason we have not begun construction already.”
CNB Attorney Bart Calhoun said, “We appreciate the Supreme Court expediting this matter which is of great importance to the state and Pope County. We are confident the state statute and Racing Commission rule will be upheld, and Amendment 100’s local support requirement enforced, confirming Legends Resort & Casino as the only applicant qualified to receive the Pope County license for casino gaming.”
Voters approved Amendment 100 in 2018. It authorized expanded gambling operations at racetracks in Hot Springs and West Memphis and also allowed the Racing Commission to issue one casino license each in Jefferson and Pope counties. The Jefferson County facility, Saracen Casino Resort, is up and running. Gulfside sued after its license application was initially denied by the Racing Commission because its letter of support was signed by County Judge Jim Ed Gibson a few days before his term expired on December 31, 2018. Amendment 100 requires local endorsements, but it doesn’t spell out when the endorsements have to be dated or submitted.
Pulaski County Circuit Judge Tim Fox twice rejected a Racing Commission rule and a state law he said were unconstitutional, requiring the endorsements come from local officials in office at the time of license application. He said the rule and the law added an extra requirement to Amendment 100.
Last year the Racing Commission awarded the license to Gulfside, but CNB appealed Fox’s decision to the state Supreme Court. It rejected oral arguments but both parties filed briefs. The court will return to session on September 9.
Gulfside’s 47-page brief reiterated the story of the conflict and argued that “the county judge” in Amendment 100 refers to the person holding that office “the day the letter was issued,” as long as it was issued after Amendment 100 went into effect on November 14. ”Nowhere in Amendment 100 does it require the letter of support to come from the county judge in office at the time the application is submitted. It is just not there,” the brief stated.
CNB’s 22-page brief argues that Gulfside is not a qualified applicant. It states, “When an entity applies for a casino license, there can be only one ‘the county judge,’ the county judge in office when the entity submits its application. The language is plain, and its effect is clear.”
Meanwhile, Pope County Judge Ben Cross filed an amicus curiae brief in support of CNB. After stating he would not support a casino in Pope County unless it was the will of the voters, Cross wrote a letter of support for CNB after they negotiated a $38.8 million economic development agreement. He wrote, “My intention when filing this Amicus Brief is to advocate for Pope County to have a voice in which operator will be a trusted member of our community for years to come. Furthermore, to set a precedent for counties across Arkansas to ensure the will of former county judges is not forced upon voters years after they are out of office.”
Joining the brief, Clay McCall of the McCall law firm said Fox’s ruling “improperly takes away the local power granted to Pope County” by Amendment 100. He said the circuit court’s interpretation of “the county judge” would open the door for applicants using letters from former county judges who served years ago. ”The circuit court opinion threatens to deprive Pope County of the $38.8 million plan This appeal directly implicates both the finances of Pope County and the regulation of its chief executive officer, the county judge,” McCall said in the brief.
Both CNB and Gulfside have opened offices in Russellville. Gulfside recently received approval of its casino development plans from the Russellville Planning Commission. It also approved a temporary annex for a small casino to be used during construction of the main venue.
