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Cherokee Nation casino group sues to block recently passed Issue 2

The mission to bring a casino to Pope County remains alive, as the Cherokee Nation group filed a lawsuit to block Issue 2.

POPE COUNTY, Ark. — The mission to bring a casino to Pope County remains alive as Cherokee Nation Businesses, Cherokee Nation Entertainment and Pope County resident Jennifer McGill filed a lawsuit Friday to restrain Arkansas from enforcing Issue 2.

Voters passed Issue 2 this past week, which revoked the Pope County casino license and would allow for a special election on any future casinos in the county where they would be located.

"Cherokee Nation Entertainment is firmly committed to protecting its constitutional rights, defending its lawfully issued casino license, and safeguarding the substantial investments it made," Cherokee Nation Entertainment Legal Counsel Bart Calhoun said. "Amendment 104 undermines foundational legal rights and stands to interfere with several binding contractual obligations."

Cherokee Nation Entertainment, wholly owned by Cherokee Nation Businesses, filed the motion for a temporary restraining order and preliminary injunction because it will cause "irreparable harm" if the amendment goes into effect on Nov. 13.

Additionally, the lawsuit asks the court to grant the motion before that date.

"I'm aware of the baseless lawsuit and am ready to vigorously defend the State of Arkansas," Attorney General Tim Griffin said.

Cherokee Nation Entertainment was awarded the Pope County casino gaming license on June 27, 2024, and said it has invested millions of dollars, thousands of man-hours, and other substantial amounts in pursuing the casino project.

If Issue 2 goes into effect, the entities claim all their work would be wasted, as the amendment strips the license for "no valid purpose."

According to UA Little Rock Professor of Law Joshua Silverstein, there are a number of arguments the parties are proposing as a way to fight the current litigation.

"One type of argument is that the elimination of their license is simply unconstitutional under the federal constitution," Professor Silverstein said. "That it violates the due process clause, that it violates the equal protection clause, and that it violates the takings clause."

The lawsuit alleges "the amendment violates the constitutional rights of plaintiffs" and "plaintiffs will suffer irreparable harm if the amendment goes into effect. 

In the lawsuit, Cherokee Nation Businesses, Cherokee Nation Entertainment and McGill said the ballot measure's vague wording could have misled voters at the polls.

"The voters had no idea, by looking at what was in front of them in the voting booth, that they were revoking CNE's license or nullifying a government contract," the lawsuit said.

The Arkansas Casino Gaming Amendment of 2018, also known as Amendment 100, was passed by voters during the 2018 general election. It authorized the Arkansas Racing Commission to issue four casino licenses, with Pope County earning one.

Issue 2 retains every other casino license issued by the State of Arkansas but removes the one Pope County was granted, according to Cherokee Nation Businesses, with "no justification for the disparate treatment."

According to a motion filed by Judge Price Marshall, the court requested a response from the State of Arkansas by 4 p.m. CT on Nov. 11, 2024.

THV11 acquired a response from the Attorney Generals Office stating that "the case should be dismissed" as it cites the 11th amendment of the US Constitution that mostly bars states from getting sued in federal court.

A hearing on the motion is set to take place at 1:30 p.m. CT on Tuesday, Nov. 12, 2024.

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