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Arkansas Supreme Court Partially Rejects Casino Lawsuit

Arkansas Supreme Court Ruling on Pope County Casino Referendum: A Legal Tug-of-War

Introduction

Posted on October 15, 2024, the ongoing legal battle surrounding a proposed referendum in Arkansas has made headlines, as the state’s highest court recently made a pivotal ruling concerning a gaming license for a casino resort in Pope County. This development is significant not just for the stakeholders involved but also for the state’s legislative landscape and the future of gambling in Arkansas.

The Case Background

On Monday, the Arkansas Supreme Court partially rejected a lawsuit aimed at derailing a ballot referendum set for November’s election. The referendum seeks to amend the Arkansas Constitution to restrict gaming licenses to those counties that have demonstrated local support through referendums. The proposed Issue 2 comes on the heels of a statewide ballot in 2018 that authorized commercial casinos in specified counties, including Crittenden, Garland, Jefferson, and Pope. However, Pope County voters were among the minority who rejected casinos, making this situation a contentious issue.

Implications of the Ruling

If Issue 2 is approved in the upcoming election, it will enable only those counties that affirmatively vote for casino developments to receive gaming licenses from the Arkansas Racing Commission (ARC). This stipulation aims to ensure that local populations have a say in whether casinos can operate within their jurisdictions. Cherokee Nation Entertainment, the entity that was awarded the Pope County casino license earlier this year, initiated the lawsuit, citing concerns over how canvassing for the referendum was conducted.

The High Court’s Partial Dismissal

In its ruling, the Arkansas Supreme Court dismissed several claims brought forward by Cherokee Nation Entertainment. Notably, they rejected allegations that the political group Local Voters in Charge, supported by the Choctaw Nation, unlawfully compensated canvassers based on voter signatures collected. The court found no substantial evidence that the canvassers acted improperly, stating that procedural errors cited by the Cherokee were not convincing enough to warrant invalidating the signatures needed for the ballot measure.

Arkansas Supreme Court Associate Justice Courtney Rae Hudson articulated that while there were videos suggesting unlawful practices, crucial details were missing from the evidence presented. Specifically, the court noted, “An improper offer without more is not enough to invalidate signatures.”

The Importance of the Referendum

The dispute isn’t merely a legal technicality; it reflects broader tensions over gambling in Arkansas. In a state where gaming has become a polarizing topic, the outcome of this referendum could reshape the industry landscape. The Supreme Court’s decision effectively prolongs the legal challenges to voting on Issue 2, making the chances of the Cherokee Nation’s preferred outcome less likely.

Remaining Legal Questions

While the court dismissed most of the claims, one remains under consideration: whether the language used in the ballot title is misleading. This aspect could still influence the eventual decision regarding the referendum and evoke further legal discussions in the near future.

Allison Burum, a spokesperson for the Cherokee and its campaign coalition, expressed concerns about the referendum’s implications on local autonomy and the will of Arkansas voters. “Issue 2 is misleading and its sole purpose is to undo the will of Arkansas voters,” she asserted.

Local Perspectives and Polling Data

Local support for the referendum appears mixed. Recent surveys indicated that 42% of likely voters support Issue 2, whereas 28% oppose it, leaving a significant fraction—30%—undecided. This divided opinion underscores the contentious nature of the issue and the potential for heated debate as election day approaches.

Local Voters in Charge rejoiced at the court’s ruling, underscoring its implications for grassroots support in the state. Spokesperson Hans Stiritz praised the unanimous decision, which affirmed their canvassing methods.

Conclusion

As the Arkansas Supreme Court navigates the complexities of this case, its forthcoming decisions will likely reverberate throughout the state. The outcome could establish vital precedents governing the distribution of gaming licenses and the extent of local authority over casino developments. With the clock ticking down to the November elections, both sides remain poised to make their final arguments, leaving voters to decide the ultimate fate of Issue 2 and the future of gaming in Arkansas.

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