The Arkansas Racing Commission reopened earlier this week the process for license applications for the development of a full-fledged casino resort in Pope County.
The move came a week after County Judge Ben Cross and the Quorum Court issued a letter of support for a proposal presented by the Cherokee Nation Businesses for a $225 million casino resort just north of Russellville and Interstate 40.
In June, the state Racing Commission rejected all five applications it had received, saying that none of the applicants had obtained letters of support from the county judge and local officials. The regulator also pointed out that it would reopen the application process as soon as Judge Cross and the justices of peace vote on a casino proposal.
State voters approved during last November’s ballot the legalization of casino-style gambling and the development of two new casinos in Pope and Jefferson Counties. However, under Amendment 100, the casino authorization legislation, any gaming license application submitted with the Racing Commission needs to be endorsed by county officials.
With the application process now being reopened, interested developers have until 5 pm on November 18 to submit their proposals with the Racing Commission.
Providing more details about the relaunched application process, Arkansas Department of Finance and Administration Spokesman Scott Hardin said that “due to the competitive advantage that would be created by broad release prior to the close of the application period, applications will not be shared publicly until November 18.”
Mr. Hardin added that if the commission receives one application, “a thorough review will be conducted by commissioners to ensure the requirements of Amendment 100 are met.” If multiple applications are received, “the commission must weigh several factors within each proposal to determine the best fit for Pope County” and the state.
Controversy
Five applications were submitted with the Racing Commission during the previous application window, with those coming from Gulfside Casino Partnership, Cherokee Nation Businesses, Warner Gaming, in partnership with Hard Rock International, Choctaw Division of Commerce, and Kehl Management.
Of all five, only the Cherokee Nation Businesses said that it would file an application “in the near future.”
The company, which is managed by the Cherokee Nation of Oklahoma, plans to build the $225 million Legends Resort & Casino. The property will feature a 50,000-square-foot casino with 1,200 slot machines and 32 table games, a sportsbook, a sports bar, a 200-room hotel, a 100-spot RV park, a 5,000-seat outdoor music venue, and multiple dining facilities. The company has partnered hospitality group Legends to materialize the project.
However, the letter of support from local officials has stirred the pot for the Pope County casino application and selection process, causing a huge controversy that involves accusations of impropriety and legal challenges.
Gulfside is suing the Racing Commission, after the regulator rejected last week its appeal of the June rejection of its application, which included letters of support obtained last year by outgoing county officials.
The Racing Commission ruled earlier this year that casino endorsements must come only from current officeholders. The state Legislature adopted an act that stated the same thing. However, Gulfside claims in its lawsuit that the rule is unconstitutional because last November’s Amendment 100 does not state when letters of support should be dated.
Warner Gaming and the Choctaw Nation accused Judge Cross and the Quorum Court of impropriety and lack of transparency during the process of review of the five casino applications that concluded with the endorsement of the Cherokee Nation’s bid.
Warner Gaming’s CEO, Bill Warner, said earlier this week that the company would be interested in submitting an updated application as long as “a transparent process with a level playing field can be established regarding the county support letter.” Judge Cross said last week that he does not plan to endorse any other casino project.
Pope County residents have too expressed concerns regarding the way the endorsement process was conducted. County voters rejected overwhelmingly Amendment 100 last year and approved an ordinance that no casino project could move forward without a countywide vote.
Judge Cross himself said previously that he would not endorse a casino plan without voters’ approval. However, the recently issued letter of support for the Cherokee Nation’s plan raised questions whether the casino endorsement process has been marred by improprieties.
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