Cherokee Nation’s Casino and Resort Plans Still in Legal Limbo

Arkansas, in a bid to reinstate its Pope County casino license, which was nullified following the age of Amendment 104. The amendment, approved by voters statewide on November 5, 2024, blocks the issuance of the license, which had previously been granted to the tribe.

A Lengthy Legal Battle Over Casino Plans

In response to the amendment, Cherokee Nation Businesses LLC, based in Catoosa, Oklahoma, filed a lawsuit seeking to have Amendment 104 declared unconstitutional and to prevent its enforcement. The tribe, which has already invested millions of dollars into the Legends Resort & Casino project, argues that the amendment infringes on their rights and undermines a legal process already in motion.

“There’s definitely still a strong desire and a lot of hope,” said Allison Burum, a spokeswoman for Cherokee Nation Businesses, speaking with Arkansas Business in late January. She added that the legal team had been busy preparing for the scheduled bench trial, set to begin on March 25, 2025.

The ongoing legal conflict stems from the state’s voter-approved amendment, which effectively repealed the Arkansas Racing Commission’s authority to grant a casino license in Pope County. As a result, the Cherokee’s pre-existing casino license was rescinded, and a new process for issuing casino licenses was put in place.

Controversy and High-Stakes Political Pressure

The amendment’s approval ignited significant debate, with Cherokee Nation and its ers strongly opposing the move. The tribe has poured substantial resources into the project, spending at least $35 million on acquiring more than 200 acres of land along Interstate 40 in Pope County. Additional funds have been invested in the casino and resort’s plans, which include a large hotel and gambling hall.

Additionally, Cherokee Nation contributed $13.3 million to the campaign committee “Investing in Arkansas,” which fought against the age of Amendment 104. However, the amendment received overwhelming from voters, with a 55% approval rate, despite intense lobbying by the tribe. The Choctaw Nation of Oklahoma, which operates a casino resort in Pocola, Oklahoma, contributed a record-breaking $17.65 million to the amendment. The Choctaws argued that the amendment was in their best interest, given the proximity of their resort to the Arkansas border.

The amendment has been criticized for its cost and the implications it has on local voters’ rights. Pope County Judge Ben Cross, a vocal er of the Cherokee Nation’s casino plans, described the situation as frustrating, citing the significant costs and the negative impact on local communities. “This became the most expensive constitutional amendment in the state’s history,” Cross said, adding that the entire state was able to override the will of local voters, even though the decision in 2018 to approve casino licenses had already been made by Arkansas voters.

Legal and Economic Implications of Amendment 104

Pope County Judge Cross has expressed concern about the long-term economic consequences for the region. The Cherokee Nation had promised to invest $320 million into the project, which would include a 50,000-square-foot gaming area, a hotel with 200 guest rooms, and numerous job opportunities for the local population. The tribe also entered into a $70 million economic development contract with Pope County and its municipalities, which would have provided substantial financial benefits to the local community, including direct payments to schools, volunteer fire departments, and other nonprofits. However, these plans have been derailed by Amendment 104, which Judge Cross described as a substantial loss.

“The validity and legitimacy of that document, and how losing it affects us, will all be points brought up in the trial,” Cross said. “It was $38.8 million up front, and direct cash payments to every municipality in Pope County, the county itself, and a multitude of nonprofits, every volunteer fire department and every school district.”

What’s Next for Cherokee Nation and Pope County?

The March trial is set to determine the next steps for the Cherokee Nation’s plans. If the tribe prevails, it may be able to proceed with its project, which many see as an important economic opportunity for Pope County. However, if the federal courts uphold the amendment, the Cherokee Nation’s casino plans could be dashed for good.

Despite the uncertainty, both sides anticipate further legal challenges. Judge Cross has already predicted that whatever the outcome of the trial, it will likely lead to an appeal to the 8th U.S. Circuit Court of Appeals in St. Louis.

The state’s position, as represented by Senior Assistant Attorney General Ryan Hale, asserts that the tribe’s due process rights were respected when the Arkansas Supreme Court allowed the issue to be put before voters. However, Judge D. Price Marshall, presiding over the case, expressed reluctance in not halting the amendment’s enforcement in November, acknowledging that the plaintiffs presented “good arguments” in their case.

As the trial approaches, both sides prepare for a legal showdown that could determine the fate of the casino project. For Cherokee Nation Businesses, the stakes are high, with millions of dollars already invested in the venture and the potential for significant economic impact on the local community at risk.

Source:

”Cherokee Nation bets on a long shot to revive Arkansas casino license revoked in statewide vote”, cdcgaming.com, February 03, 2025.