Federal Judge Dismisses Suit Over Anti-Casino Ruling in Arkansas

A federal judge in Arkansas dismissed a legal request to delay the implementation of an anti-casino constitutional amendment cemented by local voters last Tuesday.

Nearly 56 percent of voters approved a ballot initiative known as Local Voters in Charge that removed a Pope County casino license from the possession of Cherokee Nation Entertainment (CNE) and required all future licenses to be decided via countrywide elections.

The constitutional amendment went into effect on Wednesday, Nov. 13.

Taking issue with the ballot initiative

Judge D.P. Marshall Jr. on Wednesday denied the temporary restraining order and a preliminary injunction request from CNE, a subsidiary of the Cherokee Nation of Oklahoma.

Issue 2, the initiative on the ballot, prompted voters to choose if the Arkansas Racing Commission should be granted authority to issue casino licenses only in counties where local referendums show support for gaming facilities.

In 2018, the majority of Arkansas’ 75 counties voted to approve casinos in Pope, Crittenden, Garland, and Jefferson counties. However, Pope County was one of 11 counties to vote against the license issuance.

Issue 2 was funded by the Choctaw Nation, the rival tribe of the Cherokees and owner of a string of casinos in Oklahoma.

“Like a liquor-license holder, CNE knowingly and voluntarily applied for and took the casino license with its concomitant perils, including the right of the people to take it away with or without notice,” said attorney Elizabeth Robben Murray on behalf of the Local Voters in Charge. “The ARC Casino Gaming Rules expressly warn that the license is ‘a revocable privilege’ and ‘no holder … shall be deemed to have acquired any vested rights therein or thereunder.' 

“This is the nature of the industry,” she continued. “CNE has no protected rights related to its license, and in turn, no legal basis to complain.”

The plaintiff’s argument

Just because Judge Marshall denied the requests does not mean that the case is over. According to online court filings, the case will continue with more briefs scheduled for later this month.

CNE is arguing that the removal of the casino license, which was awarded by the Arkansas Racing Commission in June, “unconstitutionally violated” the group’s rights.

Cherokee Nation Businesses and Jennifer McGill, a registered voter in Pope County, also unsuccessfully challenged the initiative before the election.  The defendants listed in the latest legal challenge include Gov. Sarah Huckabee Sanders and the seven members of the Arkansas Racing Commission. 

Senior Assistant Attorney General Ryan Hale on behalf of the state filed a brief on Monday that requested the judge dismiss CNE’s requests for the temporary restraining order and preliminary injunction.

Hale stated that CNE’s requests violated the 11th Amendment to the U.S. Constitution, which limits the federal courts from hearing certain lawsuits against states.

Marshall officially ruled against the motions without prejudice. He also informed CNE that it must provide a schedule for expedited discovery and its evidence supporting a trial on injunctive relief by Nov. 15. 

A trial date has not been established.