The Cherokee Nation has recently filed a temporary restraining order and a preliminary injunction request against Issue 2, which was repealed following the elections. But a judge has denied this request, leading the ongoing saga of the casino license in Pope County, Arkansas.

A federal judge has dismissed an attempt to delay the application of a recent constitutional amendment that rescinds a casino license in Pope County. Judge D.P. Marshall Jr., of the Eastern District Court in Arkansas, ruled on Wednesday, denying a preliminary injunction and a temporary restraining order sought by Cherokee Nation Entertainment, a subsidiary of the Cherokee Nation of Oklahoma. The judge's decision clears the path for Issue 2, a referendum passed by Arkansas voters, to take effect immediately.

The 2024 statewide referendum, Issue 2, garnered significant support in the recent elections, with nearly 56% of voters backing the measure, which restricts the Arkansas Racing Commission to issuing casino licenses only in counties where local referendums endorse gambling activities. Pope County, despite being included in a 2018 state law authorizing casinos in four counties, had been one of 11 counties that voted against gambling. With the passage of Issue 2, Pope County is officially removed as a potential site for commercial casinos, effectively repealing the gaming license issued to CNE in June.

CNE had challenged the new amendment, arguing that it violated multiple constitutional protections, including the due process, contract, equal protection, and taking clauses of the US Constitution. However, Judge Marshall dismissed these claims without prejudice, allowing the Cherokee Nation to continue its lawsuit but rejecting the immediate relief it had sought.

CNE's investment in Russellville casino plans overturned

The repeal of the Pope County casino license delivers a significant setback for Cherokee Nation Entertainment, which had announced plans to invest $300 million in Russellville's Legends Resort & Casino. CNE projected that the resort would bring a substantial economic boost to the region, with an estimated 10-year economic impact exceeding $5 billion. The project aimed to employ more than 2,000 people and planned to contribute nearly $40 million to Pope County through an Economic Development Agreement. This funding was earmarked for community organizations, local government, first responders, arts initiatives, and scholarships.

Despite CNE's investment plans, the campaign for Issue 2, known as the Local Voters in Charge referendum, argued that Pope County's casino license was never secure. The campaign was financially supported by the Choctaw Nation, a rival tribe that owns casinos in neighboring Oklahoma. Attorney Elizabeth Robben Murray, representing the Local Voters in Charge campaign, contended that CNE was fully aware of the potential risks involved in obtaining a gaming license.

"Like a liquor-license holder, CNE knowingly and voluntarily applied for and took the casino license with its concomitant perils, including the right of the people to take it away with or without notice," Murray argued. The ARC's Casino Gaming Rules explicitly state that the license is "a revocable privilege" with no inherent or vested rights, further undermining CNE's claims of a protected right to the license, she added.

Legal battle to continue

Although the Cherokee Nation's request for immediate relief has been denied, Judge Marshall's ruling does allow the tribe to continue its legal challenge. The judge set deadlines for further court proceedings, ordering CNE to file a response by the 19th of November regarding the Local Voters in Charge's motion to intervene. Additionally, Local Voters in Charge has until the 22nd of November to respond to CNE's filing. The judge also directed CNE to deliver a trial on injunctive relief and a proposed schedule for expedited discovery by November 15, with a trial date to be determined later.

This decision marks a key moment in Arkansas's ongoing casino licensing debate, which has seen counties across the state divided on the issue. For now, Pope County remains off-limits for commercial casino development, upholding the will of the voters as expressed in last week's referendum.