Ongoing Dispute in Pope County as Casino License Loser Files Lawsuit Against State Authority
In a legal battle that could have significant implications for the gaming industry in Arkansas, Cherokee Nation Entertainment (CNE) has filed a lawsuit against the state, challenging the constitutionality of Issue 2, a constitutional amendment that repealed a casino license previously granted to them.
The license in question was issued under Amendment 104 in 2018, which authorized four state casinos, including the one in Pope County. CNE had invested years of effort and millions of dollars in developing the $300 million Legends Resort Casino project in Russellville, based on the license they received. However, Issue 2, passed overwhelmingly in 2024, effectively overturned the Pope County license, prompting CNE to file a federal lawsuit in the Eastern District Court of Arkansas against the state, Governor Sarah Huckabee Sanders, and the Arkansas Racing Commission.
The tribe alleges that the repeal of the license through Issue 2 is unconstitutional and that its removal violated their constitutional rights. The proposed casino, if developed, would include 1,200 slot machines, table games, a sportsbook, a hotel, and various amenities, marking a significant commercial gaming venture for CNE outside its existing casinos in Oklahoma and Mississippi.
The lawsuit seeks to either reinstate the casino license or obtain compensation for their economic losses. As the legal proceedings unfold, the current status of the license remains uncertain.
[1] Cherokee Nation Entertainment Sues Arkansas Over Casino License
[2] Cherokee Nation Entertainment Files Lawsuit Over Arkansas Casino License
[1] The lawsuit lodged by Cherokee Nation Entertainment (CNE) alleges that the removal of their casino license in Arkansas, through Issue 2, is a violation of their constitutional rights and unconstitutional, as it contradicts the casino-and-gambling trends set by the state.
[2] If the case proceeds and CNE is successful in their legal challenge, they stand to reinstate their previously granted casino license, enabling them to proceed with the development of the $300 million Legends Resort Casino, complete with casino-games like slot machines, table games, a sportsbook, a hotel, and various amenities, leading to significant growth in the gambling industry through sports-betting and lotteries.
[3] In the event that CNE does not manage to reinstate the casino license, they will be seeking financial compensation for the economic losses incurred due to the repeal of Amendment 104 and the passage of Issue 2, potentially setting new precedents in future gambling-trends and the interpretation of constitutional rights in the gaming industry.
