Arkansas Supreme Court Rejects Cherokee Nation's Claim for Legends Casino License.
The Arkansas Supreme Court has supported a previous court decision that the Arkansas Racing Commission's choice of awarding a gaming license in Pope County to the Cherokee Nation Businesses and Legends Resort and Casino LLC went against state laws.
This decision came after the Arkansas Racing Commission received two bids for the gaming license available through a state-wide ballot referendum in 2018.
The Cherokee Nation Businesses (CNB) teamed up with Legends Hospitality, a stadium concessions operator majority owned by billionaire Arkansas native Jerry Jones. These two entities formed Legends Resort and Casino, LLC, planning to construct a $225 million tourist spot in Russellville off of Nob Hill Rd adjacent to Interstate 40.
The commission also received a bid from Gulfside Casino Partnership, a company managed by pioneers in the Mississippi riverboat casino industry Terry Green and Rick Carter.
Following a dispute among ARC commissioners about the scoring of the two casino bids, Commissioner Butch Rice was dismissed. The state racing commission, alongside Arkansas Attorney General Leslie Rutledge's office, then announced Legends Resort and Casino LLC as the winner. Gulfside filed an appeal on several fronts.
Lower Court Judgment Confirmed
Lawyers for Gulfside stated that the CNB/Legends proposal wasn't eligible for ARC's deliberation as it violated the restrictions in the 2018 gaming law and its bid guidelines.
The claimants argued that Amendment 100 only permits a single organization to apply for the casino license, and CNB and Legends Hospitality, LLC, were deemed as two different and separate legal entities. Gulfside's legal team also managed to assert that Legends lacks gaming experience, which is explicitly mentioned in Amendment 100, making it a requirement for experienced casino gaming applicants.
In January, Pulaski County Circuit Judge Tim Fox agreed with Gulfside's appeal and disallowed the issuance of a license to CNB/Legends. This put on hold the project in Russellville to create the Legends Resort & Casino.
Majority Verdict
Richard P53, an attorney for CNB/Legends, called on the state supreme court to reverse Fox's ruling. The five justices found that Fox was accurate in identifying an error within ARC's granting the Pope County casino license to Legends.
The majority reasoned that "the language of the amendment is... unambiguous. It provides for one license to be granted to one entity for one casino*." They also asserted that the phrase "casino applicant" is singular, not plural, and there is no mention of multiple licenses in the text. The circuit court decision was valid because it determined that awarding the Pope County casino license to both Legends and CNB violated Amendment 100.
Lawyer Casey Castleberry, representing Gulfside, expressed excitement about the ruling.
"We are celebrating victory today. Just as the Racing Commission selected our superior proposal in 2020 in a contest with Legends, we are looking forward to showcasing our world-class resort concept once again to county leaders and residents," Castleberry mentioned.
Cherokee Nation Businesses's CEO Chuck Garrett issued a statement saying:
"We are upset by the decision made by the Arkansas Supreme Court. We have the backing of the existing county judge, numerous other local officials, and the community. We'll be ready to showcase our 30+ years of experience in gaming and hospitality once the Arkansas Racing Commission and Attorney General's Office decide the next steps towards upholding Amendment 100. We've already bought up more than 325 acres in Russellville and initiated building and design work in anticipation of commencement."
Conclusion
The Arkansas Supreme Court's decision unhashes CNB/Legends as the Pope County casino winner and finishes Gulfside's effort in recovering the license. It's unclear how the Racing Commission will move forward.
The other three gaming licenses permitted in 2018 are already in use. The referendum allowed for Oaklawn and Southland racinos to expand into full-fledged Las Vegas-style casinos. The remaining gaming concession was for a project from scratch in Jefferson County, similar to the one in Pope.
Jefferson County collaborated with the Quapaw Nation of Oklahoma, which opened its $350 million Saracen Casino Resort in Pine Bluff in October 2020.
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Source: www.casino.org
