The Quapaw Nation’s Downstream Development Authority recently became the first applicant for one of Arkansas’ two new casino licenses. Along with the application forms, tribal attorneys presented a check for the $250,000 application fee at the Arkansas Racing Commission office. Tribal attorney Nate Steel said, “We wanted to show the commission we wouldn’t be dragging our feet. There’s been a lot of discussion about how long it’s going to take for a new casino resort to get up and operating and generating tax revenue, which is very important. We wanted to show all interested parties that we would be moving at ultimate speed.”
Last November, Arkansas voters passed Amendment 100 allowing casino gambling licenses at Oaklawn Racing Casino Resort in Hot Springs and Southland Gaming and Racing in West Memphis, plus one each in Pope and Jefferson counties. The license application period will end May 31. Rejected applicants only will receive half of the $250,000 application fee.
Several months ago, Quapaw Nation officials announced their intention to develop the $240 million Saracen Casino Resort in Pine Bluff. Tribal Chairman John Berrey said, “I’m super excited. It’s been a long run and we’re very excited, not only for us, the Quapaw Nation, but for the citizens of Jefferson County. We’re excited to move through the process and answer any questions the racing commission may have. We’re looking forward to getting things done, getting tax revenue generated and jobs going and making Jefferson County a better place for people to live.”
Scott Hardin, spokesman for the state Department of Finance and Administration, which oversees the Racing Commission, said the commission was “pleased to formally open the application process. Following submission, applications are shared with each member of the racing commission, providing commissioners sufficient time for thorough review. We anticipate applicants will be asked to attend a scheduled June 13 meeting of the commission in order to speak to commissioners and answer questions. Depending on the number of applicants, a license could be approved as soon as the June 13 meeting.”
Steel said he did not expect other casino operators to seek the Jefferson County license. “From the scale that Downstream is looking at investing in Jefferson County, it would be very difficult for other qualified applicants to match. This goes beyond just dollars and cents. For Downstream and the Quapaw tribe this is about investment in the homeland,” he said.
Berrey said once a license is awarded, crews will start work “within 10 minutes.” He added, “It will take about 10 to 11 months to get it framed in, then we’ll open the casino and a couple of restaurants. Then we’ll finish the hotel and convention center. It will probably be 16-18 months total time. We’ll have the ball rolling and people working. We’ll be generating taxes for the state of Arkansas and we’ll be bringing people to Jefferson County for tourism.” Earlier Berrey said the Saracen Casino Resort is expected to generate $32 million in casino tax revenue in five years and employ around 1,000 people.
The situation in Pope County is more complex. Voters there overwhelmingly rejected Amendment 100 and approved an ordinance requiring voter approval plus endorsements by local officials; Downstream was endorsed by Jefferson County officials.
Gulfside Casino Partnership representatives said they will submit an application with endorsements from Pope County and Russellville officials who no longer hold office; they issued letters of support for Gulfside just before leaving office at the end of December. Earlier this year the racing commission ruled endorsements only may come from officials holding office when the application is submitted. Current Pope County and Russellville officials said they won’t support any casino proposal unless voters approve it.
Warner Gaming Chief Executive Officer Bill Warner said the company would submit an application without local government endorsements. “We’ve had meetings with them, and they’ve been pretty clear they’re not going to issue a letter of support. So, at this point in time, I think the best thing to do is to continue to move forward in the application process. Hopefully, at some point in time, we’ll get the opportunity to describe why this is going to be a great project,” he said.
The Cherokee Nation, which operates 10 casinos in Oklahoma, also has expressed interest in applying for a Pope County casino license.
Meanwhile, Oaklawn and Southland posted a combined total of $5.2 billion in wagers on electronic games of skill, according to the Arkansas Racing Commission. The amounts are from 2018, prior to the start of voter-approved full-fledged casino gambling at the two venues.
Oaklawn reported $2,051,202,966 in wagers in 2018, up from $1,940,971,842 in 2017. Southland reported $3,165,093,790 up from $3,060,821,691 in 2017. The combined wager amounts are significantly higher than the record $5.0 billion reported in 2017.
Year-to-date, Oaklawn’s numbers are up 11.3 percent in the first three months of 2019, and Southland’s wagers have increased 3.7 percent.
