Casino measure backer: Tribe's a partner

The committee formed to promote a proposed constitutional amendment to authorize up to three casinos in southwest and Northwest Arkansas said Thursday that Cherokee Nation Entertainment would be involved in a proposed casino, hotel and entertainment complex in Washington County if voters approve the amendment.

But Gov. Asa Hutchinson said he opposes the proposed amendment to authorize these casinos.

The proposed amendment -- backed by the ballot question committee Arkansas Wins in 2016 -- 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.

The owners of the three limited liability companies are Jim Thompson of Blue Eye, Mo., and Bob Womack of Branson, said Robert Coon, a spokesman for Arkansas Wins in 2016.

"Our intent, as we have stated since the outset of this campaign, has been for the casinos authorized by this amendment to be operated by well-established, credible firms in the gaming industry," Coon said.

"The Cherokee Nation has a wealth of experience and solid track record in the gaming industry, and we're excited about their involvement in this effort. Our agreement would give the Cherokee Nation the opportunity to own and/or operate the casino in Washington County, however neither outcome has been finalized at this time," he said in a written statement.

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, according to Coon. A 10th casino is under construction near Grove on Grand Lake O' the Cherokees.

The amendment wouldn't open the door for Indian tribes to operate other casinos on tribal land in Arkansas, Coon said.

A casino site has not been selected for the development in Washington County and is dependent on market research and analysis, Coon said. Casino sites for Boone and Miller counties haven't been selected either, he said.

To qualify a constitutional amendment for the Nov. 8 ballot, supporters need 84,859 verified signatures of registered voters. The deadline for submitting signatures is July 8.

Coon wouldn't reveal the number of signatures collected so far.

Casino and lottery foe Jerry Cox, president of the Family Council, said, "I think they have a very good chance to make the ballot. We are planning to form a ballot question committee that will oppose the casino measure."

"I continue to oppose initiated efforts to bring casino gambling to Arkansas," Hutchinson said in a written statement. "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 electronic "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.

"We are monitoring the situation," Southland General Manager Troy Keeping said Thursday when asked about the proposed amendment.

Oaklawn General Manager Eric Jackson could not be reached for comment by telephone on Thursday.

Amendment 87 to the Arkansas Constitution -- enacted by voters in 2008 -- authorized the Legislature to create a state lottery to raise net proceeds for college scholarships. The lottery started selling tickets on Sept. 28, 2009.

The proposed amendment backed by 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 is 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, Coon said. Net receipts include gross receipts for a 12-month period from gaming, less 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," he said.

Locally, each casino would 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, Coon said.

Metro on 06/24/2016

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