Arkansas Casino Gaming Legislation: Referendum Campaign Spending Surpasses $30 Million

The recent Arkansas casino referendum aiming to repeal a gaming license granted to Pope County has generated unprecedented financial activity, particularly concerning casino spending, marking a significant chapter in the state’s gambling narrative. This push for change highlights the complex influence of casino gaming legislation on local economies, as Issue 2 seeks to amend the Arkansas Constitution. By mandating that the Arkansas Racing Commission (ARC) may only issue gaming licenses in counties where a local referendum supporting a casino has taken place, this proposed legislation would fundamentally reshape the regulatory landscape for the industry.

A majority vote in favor of Issue 2 would revoke a casino license previously awarded to Cherokee Nation Entertainment for a $300 million development in Russellville, a project that has been the center of contention for many stakeholders.

Record-Breaking Campaign Expenditures

Leading up to the November 5 election, campaign financing reports filed with the office of Arkansas Secretary of State John Thurston reveal that this campaign has set a new record for a ballot initiative in the state. Both proponents and opponents of Issue 2 have combined to spend over $30.9 million in their respective campaigns.

Proponents of Issue 2

The pro-Issue 2 campaign, branded as Local Voters in Charge, has received substantial funding from the Choctaw Nation of Oklahoma. This investment is believed to be a strategic move to protect their casino interests in nearby Eastern Oklahoma.

Local Voters in Charge has amassed $17.7 million, primarily from the Choctaw Nation. The funds have been allocated for voter outreach and exceeding the required 90,704 signatures to place the referendum on the ballot, alongside a robust advertising campaign across billboards, television, print, and social media channels.

Opposition Campaign Funding

Conversely, Cherokee Nation, which has fought for the Pope County casino for nearly six years, has also committed significant resources to defeat Issue 2. From 2018 to June of this year, the Cherokees spent extensively to legally uphold their position as the sole qualified bidder for the Pope County gaming license.

The emergence of Issue 2 prompted the Cherokees to increase their financial commitment, funding the Investing in Arkansas committee, which advocates against the measure. To further their cause, the Cherokees infused $12.5 million into this committee’s efforts.

Additionally, they supported the Arkansas Canvassing Compliance Committee with nearly $777K, engaging in legal battles to challenge the canvassing procedures employed by Local Voters in Charge. Despite these efforts, the Arkansas Supreme Court recently ruled against the Cherokees, rejecting their claims regarding violations of canvassing rules.

Potential Economic Impact

Should Issue 2 fail, the Cherokee Nation would be poised to commence construction on the ambitious Legends Resort & Casino. The proposed venue would feature:

• A vast 50,000-square-foot casino floor
• 1,200 slot machines and 32 table games
• A state-of-the-art sportsbook
• 200 hotel rooms alongside multiple dining options
• A full-service spa and extensive meeting facilities
• A resort pool and an outdoor music venue

This development is expected to generate upwards of 2,100 direct and indirect jobs, with an economic impact projected to reach $5 billion over a decade.

Comparison to Previous Campaigns

The forthcoming 2024 casino referendum has already overshadowed the financing of the 2018 campaign, which sought voter approval for casinos in Pope, Jefferson, Crittenden, and Garland counties, a campaign that saw approximately $9 million spent.

The 2018 efforts received backing from the Cherokee Nation, the Quapaw Tribe’s Downstream Development Authority, and Delaware North, the operator of Southland Casino Racing. In contrast, opposition during that timeframe was largely held by religious institutions, which raised a mere $160K to combat the casino expansion.

Conclusion

In summary, the Arkansas casino referendum not only reflects the fierce competition between tribal nations but also highlights the increasing financial stakes in state gambling legislation. As the election approaches, the implications of these record expenditures will profoundly impact the future of gaming in Arkansas.