Published on: November 1, 2024, 01:05h.
Last updated on: November 1, 2024, 02:19h.
The Arkansas casino referendum looking to revoke a gaming license for Pope County has led to an extraordinary amount of campaign spending.
Issue 2 aims to modify the Arkansas Constitution to limit the Arkansas Racing Commission (ARC) to grant gaming licenses only to counties where a local referendum showing support for a casino is conducted.
A majority vote in favor of Issue 2 would cancel a casino license issued in June to Cherokee Nation Entertainment, a subsidiary of the Cherokee Nation of Oklahoma, for a $300 million project in Russellville.
Based on the recent campaign financial disclosures filed with Arkansas Secretary of State John Thurston’s office prior to the November 5 election, spending on Issue 2 has reached a state record for a ballot referendum. Both sides of Issue 2 have collectively invested over $30.9 million in their respective campaigns.
Unprecedented Spending
The pro-Issue 2 campaign – Local Voters in Charge – is being funded by the Choctaw Nation of Oklahoma. It is believed that the tribe is making significant investments in neighboring Arkansas to safeguard its tribal casino interests in Eastern Oklahoma.
Local Voters in Charge has collected $17.7 million, all from the Choctaws. The funds were used for voter outreach and to submit more than the required 90,704 voter signatures to place the gaming referendum on the ballot. The funding also covers expenses for billboards, TV advertisements, printed materials, and social media campaigns.
On the opposing side, the Cherokees are also investing heavily to maintain the Pope County casino they have been pursuing for nearly six years. Between 2018 and this June, the Cherokees spent millions in a successful legal battle to establish themselves as the sole qualified bidder for the Pope license.
The Choctaw’s support for Issue 2 compelled the Cherokees to spend additional millions. The Cherokees have backed the committee called Investing in Arkansas, which is urging voters to vote against Issue 2.
Investing in Arkansas received $12.5 million from the Cherokees to promote its opposition to Issue 2. The Cherokees also funded the Arkansas Canvassing Compliance Committee with nearly $777K. This committee led an unsuccessful legal challenge contesting the canvassing procedures of Local Voters in Charge.
Earlier this month, the Arkansas Supreme Court ruled against the Cherokees’ claims that Local Voters in Charge violated state canvassing rules and the ballot wording and language of Issue 2.
If Issue 2 is defeated, the Cherokees can proceed with construction on Legends Resort & Casino. The plan includes a 50,000-square-foot casino floor with 1,200 slots, 32 table games, and a sportsbook. The resort will feature 200 hotel rooms, multiple dining options, a spa, meeting facilities, a pool, and an outdoor music venue.
The project is expected to generate over 2,100 direct and indirect jobs and provide a 10-year economic impact of $5 billion.
2024 Surpasses 2018
The 2024 casino referendum in Arkansas has attracted significantly more campaign funding than the 2018 statewide ballot referendum that approved one casino in each of the counties of Pope, Jefferson, Crittenden, and Garland.
The 2018 referendum was led by the Cherokees, the Quapaw Tribe’s Downstream Development Authority, and Southland owner Delaware North. These entities spent about $9 million on the campaign.
Opposition to the casino expansion was led by religious groups, which raised less than $160K to oppose the introduction of Las Vegas-style casinos in Arkansas.