Federal judge upholds Arkansas amendment revoking Cherokee Nation casino license

A federal judge has denied Cherokee Nation Entertainment’s (CNE) attempt to temporarily halt a newly approved Arkansas constitutional amendment that revokes the company's license to operate a casino in Pope County, marking a significant setback in CNE’s efforts to challenge the state voters' decision.

U.S. District Judge D. Price Marshall Jr. late Tuesday denied CNE’s request for a temporary restraining order against Amendment 104, a measure that took immediate effect Wednesday after winning broad support from Arkansas voters. The amendment effectively revokes the casino license previously granted to CNE and mandates local elections for any future casino developments in Arkansas.

The case is part of a costly battle between the Cherokee Nation and the Choctaw Nation of Oklahoma, who collectively spent over $30 million on campaign efforts related to the ballot measure. The Choctaw Nation, which operates a casino near the Arkansas border, supported the measure amid fears of losing market share, while the Cherokee Nation fought to preserve its license.

The decision followed CNE’s lawsuit alleging that the amendment violates several constitutional protections, including the due process, contract, equal protection, and takings clauses. The lawsuit, filed jointly by CNE and Pope County resident Jennifer McGill, lists Governor Sarah Huckabee Sanders and seven Arkansas Racing Commission (ARC) members among the defendants.

Attorney General Tim Griffin praised the ruling, emphasizing his intent to “vigorously defend” the amendment in court. “To that end, the public has spoken on this issue. Arkansans decisively voted to revoke the Pope County casino license and return control to local voters,” Ryan Hale, a senior assistant attorney general, wrote in a brief on Monday. Hale also argued that federal lawsuits against the state are barred by the Eleventh Amendment, making CNE’s case unlikely to succeed.

The anti-casino campaign, led by the Local Voters in Charge committee, played a key role in passing the amendment. Attorney Elizabeth Robben Murray, representing the committee, said CNE lacks a legal basis for its claims: “Like a liquor-license holder, CNE knowingly and voluntarily applied for and took the casino license with its concomitant perils, including the right of the people to take it away with or without notice. This is the nature of the industry.”

The Pope County casino license, authorized through Amendment 100 in 2018, was one of four licenses granted by the state. While casinos have opened without issue in Crittenden, Garland, and Jefferson counties, the Pope County license has been mired in years of litigation and local opposition.