The lobbying group Driving Arkansas Forward recently submitted a proposal to Attorney General Leslie Rutledge that would allow the construction of up to three casinos. Rutledge’s approval of the title and wording of the Arkansas Casino Gaming and Highway Funding Amendment of 2018 is the first step in placing the constitutional amendment on the November ballot. Then the group must obtain 84,859 signatures from Arkansas residents before July 6, as required by law.
Group representatives said casino developers must invest at least $100 million. The casinos would be taxed at 12 percent, with 65 percent of tax revenue, or $45 million, going to highway improvements; 22.5 percent directed to the city where the casino is located; 10 percent to the casino host county; and 2.5 percent to the Arkansas Lottery Division, which would regulate the casinos.
The Arkansas Department of Transportation needs an additional $478 million annually to fund necessary projects. Nate Steel, counsel for Driving Arkansas Forward, said, “We’re talking about roughly $50 million in revenue just from the net gaining receipts tax alone that would go to the highway trust fund, and that’s a huge shot in the arm for an industry that needs it badly.”
Steel added, “Our highway system must be a priority if Arkansas wants to remain competitive nationally and provide the best economic opportunities to our residents. This amendment focuses on highway funding while creating a fair, transparent and merit-based process for issuing gaming licenses. We can no longer afford to lose potential gaming revenue to surrounding states when we have the opportunity to keep that money here and create jobs in communities that need them.”
The Arkansas Lottery Division of the state Department of Finance and Administration would issue casino licenses with the approval of leaders from counties that meet specific population and economic criteria. The proposed sites are Jefferson and Crittenden counties, plus a third in Crawford, Miller, Mississippi, Pope, Union or White counties. Steel said, “These are real resort, tourism type facilities that I think the counties and town will be very proud to have. I think we will be breaking dirt in 2019.”
Several investor groups have expressed interest in bidding for the three available casino licenses. Quapaw Tribal Chairman John Berrey said the tribe would apply for a casino license in Jefferson to build a $300 million destination hotel and casino, similar to the tribe’s property in northeast Oklahoma. “The Quapaw Tribe has a longstanding interest in economic development in Arkansas, so we’re eager to partner with a coalition supporting a constitutional amendment to bring gaming to Jefferson County and other counties in Arkansas. Unlike previous measures, this amendment uses a merit-based selection process and puts the decision-making in the hands of local communities. We are excited about the potential opportunity to work with the people of Pine Bluff and Jefferson County to invest in the future to bring more than 1,000 full-time jobs to the Delta and raise much-needed funding for Arkansas’s highway needs” Berry said..
Family Council President Jerry Cox said, “If Arkansas becomes dependent on gambling revenue to maintain our highways, the state will have to encourage more and more of this type of predatory gambling from now on. This won’t be free money. If this measure passes, Arkansans will be driving on roads paved with money that some poor person lost at the casino. It will be better for our economy if that money stays in their pockets and it is used to buy food or pay bills.”
Currently Arkansas bans stand-alone casinos but allows electronic games of skill at Oaklawn Gaming and Racing in Hot Springs and Southland Park Gaming and Racing in West Memphis. In October 2016, the Arkansas Supreme Court voted 6-1 to reject the title of a proposed constitutional amendment ballot that would have allowed three casinos in southwestern and Northwest Arkansas. Steel said, “This proposal addresses the deficiencies of previous casino proposals. It gives local leaders a voice in the process and makes sure there’s a level playing field for everyone involved.”
Voters approved a state lottery in 2008 which since 2009 has raised money for college scholarships for more than 30,000 students.
