Issue 2, the successful Arkansas ballot initiative that stripped Cherokee Nation Businesses (CNB) of its Pope County casino licence, took effect today (13 November) after a last-minute legal challenge came up short.
The measure was passed by state voters on 5 November by a 56%-44% margin. Not only does Issue 2 rescind CNB’s existing licence, it also stipulates that any further expansion be voter approved. As of today, it is now in effect, but that didn’t come without some last-minute drama.
Following the election loss, CNB sued the state on 8 November, invoking several infringements on its constitutional rights. The suit requested the court issue a temporary restraining order and preliminary injunction halting the measure from taking effect. It then filed an amended complaint yesterday (12 November), in which it added Governor Sarah Huckabee Sanders and all members of the Arkansas Racing Commission (ARC) as defendants.
A hearing was held the same day in US District Court for the Eastern District of Arkansas. Judge DP Marshall Jr ultimately denied the request for an injunction, but the case itself will continue. In Marshall’s order, filed today, briefs are scheduled through the end of the month, with a trial to follow.
Notably, Sanders and the ARC were dismissed as defendants. Their inclusion in the suit seemed contradictory given that Sanders opposed Issue 2 and the ARC unanimously awarded the licence to CNB in June.
Choctaw-funded group files to be intervenors
Prior to the hearing, the group Local Voters in Charge (LVC) filed to be intervenors in the suit. LVC is the committee funded by the Choctaw Nation of Oklahoma, which was the biggest proponent of Issue 2.
In the lead-up to the election, the Choctaws and Cherokees poured more than $30 million (£23.2 million/€27.8 million) combined into their respective campaigns, more than doubling the state record. The Choctaws operate several casinos in nearby Oklahoma and felt a Pope County casino would cannibalise some of that business.
LVC attorney Elizabeth Robben Murray wrote in the filing that CNB knew the risks attached to the licence. She cited ARC regulations stating that licensure is “a revocable privilege” and, as such, CNB has no legal claim.
“Like a liquor-licence holder, CNE knowingly and voluntarily applied for and took the casino licence with its concomitant perils, including the right of the people to take it away with or without notice,” Murray wrote.
