A woman plays a slot machine at a casino in Atlantic City, New Jersey. (Spencer Platt/Getty Images)
A federal judge on Thursday dismissed claims in a lawsuit filed by Cherokee Nation Entertainment LLC over a voter-approved constitutional amendment that hindered its efforts to build a casino in Pope County.
Cherokee Nation Entertainment, Cherokee Nation Businesses LLC and Jennifer McGill sued the state and members of the Arkansas Racing Commission in November after voters approved a statewide ballot initiative that repealed Cherokee Nation Entertainment’s casino license and requires countywide elections for future casinos in the state.
The lawsuit argued the new Amendment 104 “unconstitutionally violates” plaintiffs’ rights under the due process clause, the contract clause, the equal protection clause and the takings clause of the United States Constitution.
On Thursday, U.S. District Judge D. P. Marshall Jr. dismissed claims under the contract clause and the bill of attainder clause with prejudice, which means those claims cannot be refiled. Marshall dismissed the remaining claims, including under the takings clause, without prejudice.
“I applaud today’s ruling, which sided with the State of Arkansas and the Arkansas Racing Commissioners on all issues,” Attorney General Tim Griffin said in a statement.
Meanwhile, plaintiffs are considering their options.
“We are reviewing all aspects of the judge’s ruling and considering next steps in the legal process,” Cherokee Nation Businesses spokesperson Allison Brum said in an emailed statement.
Thursday’s ruling is the latest chapter in a yearslong saga over the Pope County casino. Approved by Arkansas voters in 2018, Amendment 100 authorized four casinos in the state – the two existing in Crittenden and Garland counties (Southland and Oaklawn) and two new ones in Jefferson and Pope counties.
While the other three casinos have been operating with no issues, issuance of the Pope County casino license has been tied up in litigation for years.
After the Arkansas Racing Commission awarded the casino license to Cherokee Nation Entertainment in June 2024, Gulfside Casino Partnership, another license applicant, filed a lawsuit challenging the issuance of the license.
The issue was further complicated when voters approved Amendment 104 last November, which repealed the Pope County casino license and requires new casinos in the state to be approved by a countywide special election.
Cherokee Nation Entertainment purchased 325 acres northeast of Russellville for the construction of Legends Resort & Casino. The group also had a $38.8-million economic development agreement to be distributed to Pope County.
Plaintiffs’ attorneys argued in court documents that Amendment 104 interferes with contracts associated with the casino project, which violates the Constitution’s contract clause.
While the other casino licenses issued under Amendment 100 have remained valid through Amendment 104, plaintiffs’ attorneys argued the Pope County license is being treated differently and therefore violates the equal protection clause.
Regarding the takings clause, plaintiffs’ legal counsel argued that the new amendment illegally takes property from Cherokee Nation Entertainment by voiding its casino license. Additionally, Amendment 100, the casino license and Cherokee Nation Entertainment’s contract with Pope County all create property rights, according to court documents.
In addressing allegations of violating the contract clause, Price argued in Thursday’s 32-page memorandum and order that Amendment 104 doesn’t interfere with Cherokee Nation’s ownership of the hundreds of acres it purchased.
“The land is no doubt much less valuable now that Amendment 104 has scuttled casino gaming in Pope County,” Price wrote. “But the Cherokee took a calculated business risk.”
Price also said that Amendment 104 is not a bill of attainder because it did not single out Cherokee Nation Entertainment for punishment. A bill of attainder means it imposes a legislative punishment without due process.
On the takings claims, Price notes that Cherokee Nation is seeking just compensation for the total value of its casino license and the reduced value of the 325 acres purchased in Pope County. That just compensation can be sought from the Arkansas State Claims Commission and the General Assembly, he said.
“That the available other way is administrative and legislative, rather than judicial, does not render it inadequate… The Court is not persuaded that, at this point, the Cherokee can seek takings damages here,” Price wrote.
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