Cherokee Nation Asks Federal Court to Dismiss Arkansas Casino Lawsuit

Posted on: July 30, 2024, 08:53h. 

Last updated on: July 30, 2024, 09:31h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

The Cherokee Nation of Oklahoma, through its commercial subsidiaries Cherokee Nation Businesses (CNB) and Cherokee Nation Entertainment, LLC, has asked a federal court to dismiss a lawsuit challenging its receiving of a casino license in Arkansas.

Cherokee Nation Arkansas Pope County
The Cherokee Nation is asking a federal judge to dismiss a lawsuit challenging its receiving of a casino license for Pope County in Arkansas. Plaintiff Gulfside Casino Partnership claims Pope County judges used coercive tactics to block its bid for the county’s lone gaming concession. (Image: Cherokee Nation Entertainment)

The Arkansas Racing Commission (ARC) in June awarded Cherokee Nation Entertainment the lone gaming license earmarked for Pope County. The state gaming agency said another bid from an entity called Gulfside Casino Partnership didn’t qualify for consideration because that application didn’t come with a letter of support from Pope County Judge Ben Cross or a resolution of support from a majority of the Pope County Quorum Court.

Gulfside, which owns and operates the Island View Casino Resort in Gulfport, Miss., subsequently sued the Cherokees, Racing Commission, Cross, and the Pope County Quorum Court. The lawsuit, which this month was moved to Arkansas’ Eastern District federal court, alleges that Cross and the quorum court used “coercive tactics” to make sure only the Cherokee plan would qualify for consideration.

The Cherokees plan to build a $300 million casino called Legends Resort& Casino in Russellville.

Motion to Dismiss 

In its response to the Gulfside complaint, attorneys representing the Cherokee entities request that the court dismiss the lawsuit. The motion explains that after taking office in January 2019, Cross met with and heard proposals from potential suitors for the county’s casino opportunity.

Judge Cross decided that he would support CNB and only CNB,” the motion explained. “Consistent with that decision, Judge Cross negotiated an Economic Development Agreement (EDA) with CNB that promised to provide significant benefits to Pope County.”

The Cherokee response claims after Cross finalized the EDA agreement, the Pope County Quorum Court issued a resolution of support for the Cherokee Nation Entertainment project. The Quorum Court considered issuing another support resolution for the Gulfside plan after hearing from the developers during a meeting in June. However, only five of the 13 justices were willing to endorse the Gulfside proposal.

Gulfside alleged that Cross and a majority of the quorum court colluded to prevent its $405 million project called River Valley Casino Resort, also in Russellville, from being reviewed. In their response, Cherokee attorneys say that claim goes against what Gulfside successfully argued in an earlier, separate lawsuit.

“In prior litigation, Gulfside successfully argued that it had standing because, despite the EDA, Gulfside could obtain Pope County’s support. Arkansas law does not allow Gulfside to take such inconsistent positions in litigation,” the motion read.

Cross and the quorum court were both allowed to lend support for more than one casino bid. But Gulfside presented evidence that another interested casino developer — Churchill Downs, Inc. — said Cross told them upon their first meeting that the company was “wasting time” because his and the quorum court’s minds were made in support of the Cherokee blueprint.

Hurdles Remain 

Arkansas voters authorized a casino in Pope County through a 2018 statewide ballot referendum. Along with the Gulfside lawsuit, the fate of the gaming license faces jeopardy from a proposed ballot referendum that would rescind the Pope County gaming concession altogether.

A political committee called Local Voters in Charge wants to amend the state’s gaming law to require that a local referendum be conducted showing support from county voters for a casino before the ARC could be allowed to grant a gaming license.

The group submitted 162K signatures to Arkansas Secretary of State John Thurston’s office earlier this month. If a minimum of 90,705 registered voter signatures are validated from at least 50 counties, the question will go before statewide voters this November.