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Editor’s note: After this week’s edition of Arkansas Business went to press, the Arkansas Supreme Court rejected the final part of a challenge to Issue 2, clearing the way for votes to be counted on the Nov. 5 ballot initiative.
In politics, it’s easy to lose sight of what’s true. That’s the case with Issue 2, a proposed constitutional amendment that would cost Arkansas a historic economic development opportunity and millions of dollars in tax revenue to benefit vital infrastructure, including state roads.
Advertisements for Issue 2 claim that it’s about local control. But the truth is this: An out-of-state casino operator who failed to win an Arkansas casino license wants to eliminate competition for its casino across state lines in Oklahoma. To do so, that operator is trying to manipulate Arkansas’ Constitution to kick a rival business out of Pope County — a business that has played by the rules, invested in the community for six years, and will create an economic engine that will benefit the entire state.
Issue 2 would revoke the Pope County casino license held by Cherokee Nation Entertainment (CNE) and remove Pope County from the list of counties authorized to have a casino. And before county voters could have their local vote, they’d have to amend the constitution — through a statewide vote — to add their county as one that can have a casino. Only then would that county’s quorum court call for the local vote.
Amendment 100, which allows casinos in four counties, already provides local control. Using its provisions, popularly elected Pope County leaders were able to interview casino operators, assess their proposals and vote — in public — on which one to endorse to the Arkansas Racing Commission, which issued the license. In Pope County, the local community did have control, and they chose CNE to operate the casino there. Issue 2 would undo that decision.
Contrary to what Issue 2 proponents say, the people of Pope County do want a casino. Twelve of 13 Quorum Court members and five Pope County mayors, having heard their constituents loud and clear, have endorsed the casino and the robust economic activity it would generate.
With Issue 2’s backers touting local control, you’d think their cause would be backed by local people. But apart from a single $100 contribution from one Arkansan, nearly $6 million for Issue 2 has come from the Choctaw Nation of Oklahoma, an out-of-state business that owns the casino across the state line and is seeking to eliminate a competitor in Arkansas.
If Issue 2 passes, CNE would be blocked from building its Legends Resort & Casino, a $300 million project that would add 1,000 local jobs while generating taxes to fund important projects and infrastructure at the city, county and state levels. Arkansas would also lose access to more money for state roads and highways under Act 416 of 2019, which transfers casino tax revenue in excess of $31.2 million to the state highway fund.
What’s more, Arkansas voters would have handed a victory to an out-of-state casino operator at the expense of their own economy, their Constitution and, ironically, the choices made by local communities. That’s why I urge you to vote against Issue 2 on Nov. 5.