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Cherokee Nation Asks Federal Court to Dismiss Arkansas Casino Lawsuit

Through its business entities Cherokee Nation Businesses (CNB) and Cherokee Nation Entertainment, LLC, the Cherokee Nation of Oklahoma has requested that a federal court dismiss a lawsuit contesting the acquisition of an Arkansas casino license.

The single casino license designated for Pope County was granted to Cherokee Nation Entertainment by the Arkansas Racing Commission (ARC) in June. A different offer from a company named Gulfside Casino Partnership, according to the state gaming agency, was ineligible for consideration because it was missing a resolution of support from a majority of the Pope County Quorum Court as well as a letter of support from Pope County Judge Ben Cross.

Following that, Gulfside, the company that owns and runs Gulfport, Mississippi's Island View Casino Resort, filed lawsuits against Cross, the Cherokees, the Racing Commission, and the Pope County Quorum Court. The lawsuit claims that Cross and the quorum court employed "coercive tactics" to ensure that only the Cherokee proposal would be taken into consideration. It was moved this month to the Eastern District federal court in Arkansas.

In Russellville, the Cherokees intend to construct a $300 million casino known as Legends Resort& Casino.

Request for Dismissal 

Attorneys for the Cherokee entities respond to the Gulfside complaint by requesting that the litigation be dismissed by the court. According to the motion, Cross spoke with and heard offers from prospective suitors for the county's casino possibility after taking office in January 2019.

"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 answer states that the Pope County Quorum Court approved the Cherokee Nation Entertainment proposal following Cross's finalization of the EDA agreement. After hearing from the developers at a June meeting, the Quorum Court contemplated adopting an additional support resolution for the Gulfside concept. Only five of the 13 justices, nevertheless, were prepared to support the Gulfside plan.

Gulfside claimed that Cross conspired with most of the quorum court to block the review of its $405 million River Valley Casino Resort project, which is located near Russellville. Cherokee's lawyers respond that the assertion contradicts what Gulfside was able to prove in a previous, different litigation.

“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.

It was permitted for Cross and the quorum court to endorse multiple casino bids. However, Gulfside produced proof that Churchill Downs, Inc., a different prospective casino developer, claimed that Cross informed them during their initial meeting that the business was “wasting time” because both he and the quorum court were committed to the Cherokee model.

Obstacles Still Exist 

In 2018, a statewide ballot initiative in Arkansas granted permission for a casino to be built in Pope County. In addition to the Gulfside case, there is a proposed ballot vote that would completely revoke the Pope County gaming concession, endangering the gaming license.

The state's gaming law is being amended by a political committee known as Local Voters in Charge, with the goal of making it mandatory for county voters to support a casino in a local referendum before the ARC can approve a gaming license.

Earlier this month, the group sent 162K signatures to the office of Arkansas Secretary of State John Thurston. This November, statewide voters will be asked the question if at least 90,705 valid signatures from registered voters in at least 50 counties are obtained.