Cherokee Nation Entertainment sues Arkansas over passage of anti-casino amendment • Arkansas Advocate

The Pope County casino license holder sued the state of Arkansas Friday after voters approved a statewide ballot initiative that repealed the license and requires countywide elections for future casinos in the state. 

Plaintiffs have asked a federal judge to declare the amendment unconstitutional and issue a temporary restraining order and preliminary injunction to prevent the amendment from taking effect on Nov. 13.

Arkansans supported the constitutional amendment, known as Issue 2, on Tuesday 637,110 to 505,038, according to complete but unofficial results from the secretary of state’s office. The majority of voters in seven counties, including Pope County, rejected the proposed amendment.

Cherokee Nation Entertainment, which was awarded the license in June by the Arkansas Racing Commission, filed the complaint in the U.S. District Court for the Eastern District of Arkansas against the State of Arkansas. 

Additional plaintiffs include Cherokee Nation Businesses and Jennifer McGill, a registered voter in Pope County. 

Those involved also challenged the constitutional amendment in court before the election as the Arkansas Canvassing Compliance Committee, but the state Supreme Court ruled that votes cast on Issue 2 would count just days before early voting in the state began.

Cherokee Nation Entertainment’s legal counsel, Bart Calhoun, issued a statement Friday saying plaintiffs are initiating litigation on multiple grounds and pursuing a temporary restraining order “to preserve our client’s rights and investments throughout the legal proceedings.”

“Cherokee Nation Entertainment is firmly committed to protecting its constitutional rights, defending its lawfully issued casino license, and safeguarding the substantial investments it made in good faith based on the establishment of the Pope County casino license under Amendment 100 in 2018,” Calhoun said in a statement. “Amendment 104 undermines foundational legal rights and stands to interfere with several binding contractual obligations.”

24.11.08 Cherokee Nation Entertainment Complaint

Approved by Arkansas voters in 2018, Amendment 100 authorized four casinos in the state — the two existing in Crittenden and Garland counties (Southland and Oaklawn) and two new ones in Jefferson and Pope counties. 

While the other three casinos have been operating with no issues, issuance of the Pope County casino license has been tied up in litigation for years. Most recently, Gulfside Casino Partnership, another license applicant, filed a lawsuit in July challenging the issuance of the license to CNE. That litigation is ongoing. 

The complaint filed Friday argues the new amendment “unconstitutionally violates” plaintiffs’ rights under the due process clause, the contract clause, the equal protection clause and the takings clause of the United States Constitution. 

“The Amendment and procedures by which it was approved have violated constitutional rights by failing to provide Plaintiffs and the electorate adequate notice and opportunity to be heard, improperly interfering with CNB and CNE’s contractual relationships, depriving Plaintiffs of their constitutionally protected interests, and arbitrarily treating CNB and CNE differently than all other Arkansas licenses,” the complaint states. 

Although a majority of Arkansas voters approved Issue 2 in Tuesday’s election, the complaint argues that voters were not properly informed of the effects of its passage because the proposed amendment did not disclose that it was revoking CNE’s casino gaming license.

“To put it simply, the voters had no idea, by looking at what was in front of them in the voting booth, that they were revoking CNE’s license or nullifying a government contract,” the complaints states.