A federal judge has ruled in favor of Arkansas in a lawsuit challenging Amendment 104, the state’s constitutional amendment that eliminated casino gaming in Pope County and revoked Cherokee Nation Entertainment’s casino license.
U.S. District Judge D. Price Marshall Jr. dismissed claims made by Cherokee Nation Businesses (CNB) that the amendment violated the Contract Clause, Takings Clause and Bill of Attainder Clause of the U.S. Constitution.
Arkansas voters approved the amendment last November. Pope County voters originally opposed casino gaming in 2018, but in 2024 voted against the amendment’s passage.
CNB has spent more than $60 million on land acquisition, construction contracts and licensing costs in anticipation of building a casino in Pope County, the judge’s opinion and order stated.
They received a casino license in June 2024, just months before Amendment 104 passed.
Marshall rejected each of the three constitutional challenges in his order.
- Contract Clause: While Amendment 104 affected contracts, it did not “impair” them within the legal meaning of the Contract Clause. He wrote that the organization “took a calculated business risk” and that real estate deals remain valid despite “no doubt” reduced property values
- Takings Clause: The court determined that CNB cannot seek monetary damages in federal court against state officials. Instead, they must pursue compensation through Arkansas’ State Claims Commission and General Assembly
- Bill of Attainder: Marshall ruled that Amendment 104 did not constitute a bill of attainder because it did not single out the Cherokee Nation by name for punishment, but rather eliminated casino gaming in Pope County generally
“I applaud today’s ruling, which sided with the State of Arkansas and the Arkansas Racing Commissioners on all issues,” Arkansas Attorney General Tim Griffin said in a press release from his office. “The Court correctly ruled against the plaintiffs on each issue.”
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