Cherokee Nation Businesses Takes Legal Action Against Arkansas
LITTLE ROCK, Ark. — A trial aimed at challenging the approval of Issue 2, now referred to as Amendment 104, commenced on Tuesday in Little Rock.
In November, Arkansas voters passed Issue 2 by a vote of approximately 56% to 44%, which resulted in the elimination of a casino license previously granted in Pope County. The amendment also mandates that any future casinos in the state must receive approval from local voters in the respective county.
As the plaintiff in this case, Cherokee Nation Businesses (CNB) is suing the state of Arkansas for either the reinstatement of their casino license or compensation for the resources they invested in the project prior to the amendment’s enactment.
The court session opened with CNB’s lawyer, Bart Calhoun, calling CEO Chuck Garrett to testify, a session expected to last until around 12:30 p.m. Calhoun and Garrett discussed the extensive diligence CNB exercised in complying with regulations and the potential losses they face if the casino, named Legends Resort and Casino, is not developed.
Garrett emphasized that CNB, which operates ten casinos in Oklahoma and one in Mississippi, has never had its license revoked or suspended. He also pointed out an economic development agreement from 2019 with Pope County, which included a minimum investment of $225 million and the establishment of various amenities, such as a hotel and water park.
During cross-examination, Ryan Hale, representing the state, referred to the Arkansas Racing Commission’s regulations regarding casino licenses, which can be revoked. He noted that the amendment might limit CNB’s ability to pursue financial claims on the property, as they cannot sell it to a competitor, potentially leaving it as agricultural land and diminishing its value.
The trial is anticipated to continue over three days, with testimony focusing on the importance of the casino license and its economic implications for the Cherokee Nation and the local Russellville community.
