Cherokee Nation Businesses will soon get to hear whether or not its plans for a casino in Pope County, Arkansas can proceed. Oral arguments concluded last week in the company’s challenge to the legality of last year’s statewide referendum invalidating its license. The federal judge presiding over the case has called for post-trial briefs and explained that he needs more time to render his decision, but expects that to happen in April.
Whatever the verdict, it may not be the end of the road for this case. An appeal seems almost certain from the losing side. The trial represents a last-ditch effort to utilize the license that Cherokee Nation Businesses had already spent years to obtain and defend in Arkansas state courts. The trial judge’s ruling will likely hinge upon his reading of the Arkansas Constitution’s process for amendments.
Oral arguments complete in Cherokee Nation v. Arkansas
Cherokee Nation Businesses et al v. State of Arkansas. Cherokee Nation Businesses (CNB) filed the complaint on Nov. 8, 2024, just three days after Arkansas voters approved Issue 2 by a 56%-44% margin.
That ballot question removed Pope County from the list of approved locations for physical casinos in the state and required local approval for any future licenses. Previously, approval of new casino licenses in Arkansas required statewide voter approval, rather than leaving the matter up to local voters only.
That amendment is at the heart of the lawsuit. In its filing, CNB argues that the referendum was unconstitutional because it violated citizens’ rights to due process, equal protection, and not to have government interference in contract matters.
CNB had received a license to operate a casino in Pope County in July 2024. The backstory that has now led to the federal district court for Eastern Arkansas is full of litigation and forecasts more courtroom proceedings yet to come.
Litigious history of Pope County casino issue
The story of a potential casino in Pope County began in 2018, when Arkansas voters approved four casino licenses with specific locations. Pope County was among them at the time.
The Arkansas Racing Commission was tasked with issuing the licenses for all four casinos. That process went relatively smoothly everywhere but in Pope County. Competing interests campaign to enshrine Amendment 104.
The current litigation is the first foray of the dispute into federal courts, however. Marshall set a deadline of April 11 for final briefs and could issue his opinion at any point thereafter.
Attorneys representing Arkansas have argued that there is still a path to amend the state’s constitution to allow for more gaming while counsel for CNB has countered with questions about the immutability of constitutional amendments in Arkansas.
Regardless of how Marshall rules, the side that ends up being displeased with the decision is likely to ask the US Eighth Circuit Court of Appeals to review the case. Nearly eight years in, there is still uncertainty about whether Pope County Arkansas will ever be home to a commercial casino.