More signatures back casinos in Arkansas

A committee promoting a proposed constitutional amendment to authorize up to three casinos in southwest and Northwest Arkansas said it turned in nearly 50,000 more signatures of Arkansans on Monday in its bid to qualify the measure for the Nov. 8 ballot.

Arkansas Winning Initiative Inc. of Stuttgart believes it handed in 49,790 signatures to Secretary of State Mark Martin's office on Monday, according to the office's receipt for the petitions with the signatures.

The additional signatures were needed because backers didn't turn in enough valid signatures earlier. On July 8, backers of the proposed amendment said they turned in 92,120 signatures to the office. On July 27, Martin's office said amendment backers had gathered at least 75 percent of the 84,859 valid signatures needed to qualify for the ballot, so they had until Aug. 26 to gather the rest.

Robert Coon, a spokesman for Arkansas Winning Initiative, said Monday that he feels "pretty certain we'll qualify for the ballot, based on what we've turned in today."

"The reception has been pretty positive," he said.

The proposed casinos would increase jobs in Arkansas, bring money spent at out-of-state casinos back into the state, and increase tourism in Arkansas, Coon said.

Thus far, "a little over 65,000 signatures have been verified" as registered voters' by the secretary of state's office from the initial batch of signatures submitted last month, said Chris Powell, a spokesman for the secretary of state's office.

"We will be working on intake this week, so hopefully later in the week we will have our initial count, and then begin verifying the second batch," Powell said Monday in a written statement.

The proposed amendment -- backed by the Arkansas Winning Initiative Inc. and Arkansas Wins in 2016 ballot question committees -- would authorize one casino each in Boone, Miller and Washington counties.

The casinos would be operated in Boone County by Arkansas Gaming and Resorts LLC, in Miller County by Miller County Gaming LLC, and in Washington County by Washington County Gaming LLC, their respective successors or whoever they assign their licenses to, under the proposed amendment.

The owners of the three limited liability companies are Jim Thompson of Blue Eye, Mo., and Bob Womack of Branson, Mo., Coon said.

Nearly two months ago, Coon announced that Cherokee Nation Entertainment would be involved in the proposed casino, hotel and entertainment complex in Washington County if voters approve the amendment. Cherokee Nation Entertainment -- the Cherokee Nation's wholly owned corporate entity that manages the tribe's gambling, hospitality, entertainment and retail ventures -- owns and operates nine casino properties in Oklahoma, including its flagship property, the Hard Rock Hotel & Casino Tulsa. A 10th casino is under construction near Grove on Grand Lake O' the Cherokees.

Arkansas Winning Initiative Inc. last week reported spending $535,196 in July, to increase its total spending to $1 million.

The committee also reported receiving no contributions last month as its total contributions remained at $1.05 million, comprised of $1 million from Cherokee Nation Businesses LLC of Tahlequah, Okla., $40,000 from Arkansas Gaming and Resort of Branson and $7,400 from Arkansas Wins in 2016 of Stuttgart.

It reported $44,840 in the bank as of July 31.

The other committee backing the proposed amendment reported receiving no contributions and spending no money in July.

Arkansas Wins in 2016 LLC of Stuttgart previously reported total contributions of $25,500, all from Arkansas Resorts and Gaming of Branson, and total expenses of $25,400.

On July 29, the Committee to Protect Arkansas' Values/Stop Casinos Now filed a statement of organization with the Arkansas Ethics Commission to oppose the proposed constitutional amendment.

The committee's filing lists Chuck Lange of Little Rock as its chairman and Kasey Fox of Benton as its treasurer. Neither Lange nor Fox could be reached for comment by telephone on Monday afternoon.

Nearly two months ago, Gov. Asa Hutchinson, a Republican, said he continues to oppose initiated efforts to bring casino gambling to Arkansas and "the proposed amendment dictates specific locations for casino gambling that prevent the people who live there from having control over what type of community they will have in the future."

While state law doesn't allow for stand-alone casinos, it permits "games of skill" at two racetracks, Oaklawn Racing and Gaming in Hot Springs and Southland Park Gaming and Racing in West Memphis. Gambling at those two facilities is subject to regulation by the Arkansas Racing Commission.

Oaklawn General Manager Eric Jackson and Southland General Manager Troy Keeping could not be reached for comment by telephone Monday afternoon.

The state also runs a lottery. Amendment 87 to the Arkansas Constitution -- enacted by voters in 2008 -- authorized the Arkansas Legislature to create a state lottery to raise net proceeds for college scholarships. The lottery started selling tickets on Sept. 28, 2009, and has helped fund more than 30,000 Arkansas Academic Challenge Scholarships during each of the past six fiscal years.

The proposed amendment backed by Arkansas Winning Initiative Inc. and Arkansas Wins in 2016 would define casino gambling as including any game, device or type of wagering permitted at a casino operated within Louisiana, Mississippi, Missouri, Nevada, Oklahoma, Tennessee or Texas as of Nov. 8 or "as subsequently permitted thereafter."

Casinos would be allowed to operate on any days of the year and any part of the day. They would be permitted to sell alcoholic beverages or to provide complimentary servings of alcoholic beverages when the casino was operating.

The amendment also would create an Arkansas Gaming Commission, comprised of five members appointed by the governor, to regulate casinos in accordance with laws.

Each casino authorized by the amendment would pay an annual net gaming receipts tax of 18 percent to the state, according to Coon. Net receipts include gross receipts for a 12-month period from gaming, minus amounts paid out or reserved as winnings to casino gaming patrons for that period. This percentage is consistent with the tax rate currently paid by other gaming operations in the state, according to Coon.

Each casino would also pay an annual net gaming receipts tax of 0.5 percent to the county in which the casino was located and of 1.5 percent to the city or town in which the casino was located, according to Coon.

A Section on 08/16/2016

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