Arkansas Cherokee Nation Casino gets support from Pope County Appeals Court
Cherokee Nation Businesses (CNB) received a big boost this week for its $300 million Legends Resort & Casino project in Russellville, Arkansas.
Pope and Jefferson counties are one of two counties in Arkansas designated for new commercial land-based casinos through a 2018 referendum. The gaming license also allows Crittenden and the racetracks in Garland, Southland and Oaklawn to become full-service casinos offering slot machines, table games and sports betting.
As for gaming outright, a 2018 referendum stated that the Arkansas Racing Commission (ARC) should only consider proposals accompanied by a letter of support from a sitting judge or statutory court in the county. That provision complicates the ARC's review of casino opportunities in Pope County.
CNB is the business arm of the Cherokee Nation of Oklahoma. In addition to its gaming and hospitality divisions, CNB has subsidiaries that invest in federal government contract work, infrastructure projects and real estate development.
The Cherokees submitted a bid for Legends Resort and Casino and received a letter of support from Pope County Judge Ben Cross. Gulfside Casino Partnership has put forward a $254 million competing offer for the River Valley Casino Resort, also in Russellville.
The Mississippi Riverboat gambling operator presented its casino project to ARC with a letter of support from former Pope County Judge Ed Gibson, who pledged his support to Gulfside days before leaving the bench in December 2018.
Litigation
ARC Gulfside consulted with then-Arkansas Attorney General Leslie Rutledge over casino charters following a 2020 scandal that resulted in the Arkansas Racing Commissioner being biased in evaluating two casino sites in Pope County The license was subsequently issued by the rights office. At the time, the Cherokees appealed the decision, claiming Gulfside's proposal should never have been considered because the project lacked the support of the current Pope County judge or the Regional College.
The lawsuit was filed with the Arkansas Supreme Court, which ruled that ARC erred in recognizing Gulfside as a qualified bid due to the county's lack of judicial support. The Game Commission subsequently deemed the Cherokee program the winner, which led to further litigation.
Gulfside's attorney said the Cherokee proposal is also invalid because a 2018 referendum called for transferring county property to various entities. There is no partnership like the one the Cherokees have with Legends Resort & Casino, LLC. Gulfside's lawyers also cited referendum language, saying only companies that can demonstrate gaming experience should be considered by ARC.
In October, the Arkansas Supreme Court sided with Gulfside in the case. The judge ruled that ARC was ineligible for the CNB program because the program involved two companies and Legends Resort & Casino, LLC had no relevant experience. Legends Resort & Casino, LLC is a wholly owned subsidiary of CNB.
Casino Clarity
Pope County officials hope to reap the same economic benefits as three other Arkansas counties that already have casinos. This week, the Pope County Public Requests Committee appears to have paved the way for that by narrowly choosing one of the two proposals.
The Pope County Commission voted 7-6 in favor of CNB Casino. As Cross maintains its support, the Gulfside team seems unable to bring its casino product into ARC consideration.
ARC expects to reopen the bidding phase for the Pope County casino soon.
“We’re ready to apply,” said CNB CEO Chuck Garrett. "We purchased 350 acres in Pope County. We went through the planning board. We have all the pieces in place."
To resolve legal issues surrounding CNB's bid as a joint venture, the Cherokees may bid exclusively this time as CNB, known as Legends Resort & Casino, LLC.
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Source: www.casino.org
