Issue 2 in Arkansas goes into effect following a failed court battle.
After a last-minute court battle failed, Issue 2, the winning Arkansas voter initiative that revoked Cherokee Nation Businesses' (CNB) Pope County casino license, went into effect today, November 13.
Saracen, Arkansas, internet gambling
On November 5, state voters approved the initiative by a majority of 56% to 44%. Issue 2 not only nullifies CNB's current licence but also mandates that any additional growth must be authorised by voters. Although it went into effect today, there was some last-minute controversy.
On November 8, after the election defeat, CNB filed a lawsuit against the state, claiming many constitutional rights violations. The lawsuit asked the court to grant a preliminary injunction and temporary restraining order to prevent the measure from going into force. Then, yesterday, November 12, it filed an amended complaint, including all Arkansas Racing Commission (ARC) members and Governor Sarah Huckabee Sanders as defendants.
The same day, the US District Court for the Eastern District of Arkansas held a hearing. The case will proceed even if Judge DP Marshall Jr. finally rejected the request for an injunction. Briefs are planned until the end of the month, with a trial to follow, according to Marshall's order, which was filed today.
Interestingly, both the ARC and Sanders were dropped as defendants. Given that Sanders resisted Issue 2 and the ARC unanimously granted the licence to CNB in June, their presence in the lawsuit appeared to be incongruous.
A group supported by Choctaw files to act as intervenors.
Local Voters in Charge (LVC) filed to intervene in the case prior to the hearing. The Choctaw Nation of Oklahoma, which was the largest advocate of Issue 2, provided funding to the LVC committee.
The Choctaws and Cherokees more than doubled the state record by contributing almost $30 million (£23.2 million/€27.8 million) to their respective campaigns in the run-up to the election. The Choctaws believed that a casino in Pope County would eat into their business, which they already had in neighbouring Oklahoma.
In the complaint, LVC lawyer Elizabeth Robben Murray stated that CNB was aware of the dangers associated with the licence. Citing ARC regulations, she stated that CNB had no legal claim because licensure is "a revocable privilege."
"CNE applied for and accepted the casino license with its associated risks, such as the people's right to revoke it with or without notice, knowingly and voluntarily, just like a liquor-licence holder," Murray wrote.
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