Federal Judge Blocks Cherokee Nation's Challenge to Arkansas Casino License Repeal

Federal Judge Blocks Cherokee Nation's Challenge to Arkansas Casino License Repeal

By Michael Harrison

November 20, 2024 at 02:51 AM

A federal judge has dismissed Cherokee Nation Entertainment's (CNE) attempt to block Arkansas' Issue 2 ballot referendum outcome, which repealed a casino license in Pope County.

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Judge D.P. Marshall Jr. denied CNE's request for a temporary restraining order and preliminary injunction in Arkansas' Eastern District Court. The tribe had challenged Issue 2 on constitutional grounds, including violations of due process, contract, equal protection, and takings clauses.

The constitutional amendment, which passed with 56% support, became effective November 13, 2024. It limits the Arkansas Racing Commission (ARC) to issuing casino licenses only in counties where local referendums support gambling activities.

Pope County was among only 11 of Arkansas' 75 counties that opposed gambling in the 2018 statewide casino authorization. The Choctaw Nation funded the Issue 2 campaign to prevent competition for its Oklahoma casinos.

CNE's proposed $300 million Legends Resort & Casino in Russellville would have created 2,000 jobs and generated a projected $5 billion economic impact over 10 years. The project included a $40 million Economic Development Agreement benefiting local government, community organizations, and various programs.

The case continues as Judge Marshall ruled "without prejudice." Key upcoming dates include:

  • November 19: CNE's response to Local Voters in Charge intervention
  • November 22: Local Voters in Charge reply deadline
  • November 15: CNE's proposed schedule for expedited discovery and trial

The judge will set a trial date in a separate notice.

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