Arkansas' Issue 2 has officially taken effect following its approval by state voters on November 5, who supported it with a 56%-44% margin. The measure not only revokes CNB's current license but also mandates that any future expansions must receive voter approval. However, the implementation of this measure encountered some last-minute challenges.
On November 8, in response to the election results, CNB filed a lawsuit against the state, alleging violations of its constitutional rights. The complaint asked the court for a temporary restraining order and a preliminary injunction to prevent the measure from taking effect. On November 12, CNB submitted an amended complaint that included Governor Sarah Huckabee Sanders and all members of the Arkansas Racing Commission (ARC) as defendants.
A hearing took place the same day in the U.S. District Court for the Eastern District of Arkansas, where Judge D.P. Marshall Jr. ultimately denied the request for an injunction, though the case will continue. In his order filed today, briefs have been scheduled through the end of the month, with a trial to follow.
Significantly, both Sanders and the ARC were dismissed as defendants. This dismissal was notable because Sanders had opposed Issue 2, while the ARC had awarded the license to CNB unanimously back in June.
Additionally, prior to the hearing, a group called Local Voters in Charge (LVC) filed to intervene in the lawsuit. LVC, funded by the Choctaw Nation of Oklahoma, was a major supporter of Issue 2. Ahead of the election, both the Choctaw and Cherokee nations invested over $30 million in their respective campaigns, setting a state record. The Choctaws, who operate multiple casinos in Oklahoma, were concerned that a casino in Pope County would detract from their business.
LVC attorney Elizabeth Robben Murray stated in the filing that CNB was aware of the risks associated with its license. She referred to ARC regulations that characterize licensure as 'a revocable privilege,' arguing that CNB does not possess a valid legal claim.
'Like a liquor-licence holder, CNB knowingly and voluntarily applied for and took the casino license with its accompanying risks, including the people's right to revoke it with or without notice,' Murray wrote.
