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Issue 2 allowed to take effect in Arkansas as casino group pursues legal action

A U.S. judge ruled that the requested temporary restraining order against Arkansas' Issue 2 would be "reluctantly denied" and another hearing would take place.

LITTLE ROCK, Ark. — The battle between the Pope County casino license holders and the state of Arkansas is not quite over as a U.S. judge ruled that the requested temporary restraining order (TRO) against Issue 2 would be "reluctantly denied" and another hearing would take place.

The ruling came down by United States District Judge D.P. Marshall Jr.,4.5 hours after the hearing began. Judge Marshall stated that "the motion for a TRO is reluctantly denied." 

Cherokee Nation Businesses LLC, Cherokee Nation Entertainment LLC and Pope County registered voter Jennifer McGill were named as plaintiffs in a lawsuit filed against the state on Friday. 

Prior to the hearing on Tuesday, THV11 was informed that Gov. Sarah Huckabee Sanders, the Arkansas Racing Commission and Racing Commission members were added as additional defendants in the lawsuit.

Following Tuesday's hearing, Marshall stated that the State of Arkansas and Board of Arkansas Racing Commission were dismissed from the lawsuit but Gov. Sanders and the individual members of the racing commission would remain.

The lawsuit alleges "the amendment violates the constitutional rights of plaintiffs" and "plaintiffs will suffer irreparable harm if the amendment goes into effect" — asking a federal judge to declare Issue 2 unconstitutional and block the amendment from taking effect.

During the hearing on Tuesday, the plaintiff's attorney Scott P. Richardson took the stand. Several arguments were brought up to Judge Marshall, including ballot questions and the accusation that the "method was so confusing for voters to understand." 

On the other side, Ryan Hale who is representing the State of Arkansas, rebutted several claims made by Richardson, stating that voters have already decided on Issue 2's standing. 

At Tuesday's hearing, Richardson made several arguments, including that millions of dollars had already been spent, the group already received a license, and that they were the "sole qualified applicant." 

Additionally he said that "all contractual relationships are not just impaired, but destroyed, with the passage of Issue 2." 

Richardson's comments on the language of the amendment presented to voters went on to state that the measure had "future tense language" and it was "so confusing, voters did not know what they were voting on."

Hale responded to those claims stating that the casino license is not property and that it's a grant of privilege. Hale proceeded with "the people can decide, the electorate is free to pick the number of casinos they want whether four, 50 or 100."

At the hearing, Judge Marshall asked for additional information from the Cherokee groups and said that he plans to get other parties back in front of him regarding the preliminary injunction. 

Until then, the Cherokee Nation Group has until Tuesday, Nov. 19 to provide an updated brief and a "shortened reply" from the state was requested by Friday, Nov. 22.

THV11 looked to interview both parties after Tuesday's hearing, but the offers were declined by each. 

The date for a future hearing has not yet been decided on. 

    

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