Through its commercial companies Cherokee Nation Entertainment, LLC and Cherokee Nation Businesses (CNB), the Cherokee Nation of Oklahoma has requested that a federal court dismiss a case that contests the acquisition of an Arkansas casino license.
Cherokee Nation Entertainment was granted the sole gaming license designated for Pope County by the Arkansas Racing Commission (ARC) in June. Another bid from Gulfside Casino Partnership was deemed ineligible for consideration by the state gaming agency because it lacked a resolution of support from a majority of the Pope County Quorum Court and a letter of support from Pope County Judge Ben Cross.
Gulfside, the owner and operator of Gulfport, Mississippi's Island View Casino Resort, then filed lawsuits against Cross, the Cherokees, the Racing Commission, and the Pope County Quorum Court. According to the case, which was transferred to the federal court in Arkansas' Eastern District last month, Cross and the quorum court employed "coercive tactics" to ensure that only the Cherokee proposal would be eligible for consideration.
In Russellville, the Cherokees intend to construct a $300 million casino known as Legends Resort & Casino.
Motion to Dismiss
Attorneys for the Cherokee entities respond to the Gulfside complaint by asking the court to dismiss the case. According to the motion, Cross spoke with and heard offers from prospective suitors for the county's casino possibility after taking office in January 2019.
"Judge Cross decided that he would support CNB and only CNB,” the motion explained. “Consistent with that decision, Judge Cross negotiated an Economic Development Agreement (EDA) with CNB that promised to provide significant benefits to Pope County.”
The Cherokee response asserts that the Pope County Quorum Court passed a resolution of approval for the Cherokee Nation Entertainment project following Cross's completion of the EDA agreement. Following a meeting with the developers in June, the Quorum Court contemplated issuing another support resolution for the Gulfside development. Only five of the 13 justices, nevertheless, were prepared to support the Gulfside plan.
Gulfside claimed that Cross conspired with a majority of the quorum court to block the examination of its $405 million River Valley Casino Resort proposal, which is also located in Russellville. Cherokee lawyers respond by stating that the assertion contradicts the arguments made by Gulfside in a previous, independent litigation.
“In prior litigation, Gulfside successfully argued that it had standing because, despite the EDA, Gulfside could obtain Pope County’s support. Arkansas law does not allow Gulfside to take such inconsistent positions in litigation,” the motion read.
Both the quorum court and Cross were permitted to support several casino bids. However, Gulfside provided proof that Churchill Downs, Inc., another prospective casino developer, claimed that Cross informed them during their initial meeting that the business was "wasting time" because both he and the quorum court had already decided in favor of the Cherokee plan.
Obstacles Still Exist
In 2018, voters in Arkansas approved a casino in Pope County in a statewide ballot referendum. In addition to the Gulfside lawsuit, a potential ballot vote that would completely revoke the Pope County gaming concession puts the gaming license's future in peril.
Local residents in Charge is a political group that seeks to change the state's gaming law so that before the ARC can issue a gaming license, a local referendum demonstrating county residents' support for a casino must be held.
Earlier this month, the group sent 162K signatures to the office of Arkansas Secretary of State John Thurston. The question will be presented to statewide voters in November if at least 90,705 valid signatures from registered voters in at least 50 counties are obtained.
