The Arkansas Supreme Court on Thursday rejected a proposed constitutional amendment to authorize three casinos in southwest and Northwest Arkansas.
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In a 6-1 ruling, the state's high court sided with the Committee to Preserve Arkansas Values/Stop Casinos Now and two of its members in their claim that the ballot title of the proposed amendment was insufficient because it failed to inform voters that federal law prohibits Arkansas and other states from authorizing sports gambling.
The proposal was to be considered in the Nov. 8 general election, and voters will see it listed on ballots.
"Per the Supreme Court's decision, while it will still remain on the actual ballot, the votes for this measure will not be counted," said Chris Powell, a spokesman for Republican Secretary of State Mark Martin.
[DOCUMENT: Read the court's full opinion]
The proposed amendment was promoted by the Arkansas Wins in 2016 and Arkansas Winning Initiative ballot committees.
The amendment would have authorized casinos in Boone, Miller and Washington counties.
The casinos would have been controlled by three limited liability companies owned by two Missouri businessmen, Jim Thompson of Blue Eye and Bob Womack of Branson. Cherokee Nation Entertainment would have been involved in the Washington County casino complex.
The Committee to Preserve Arkansas Values/Stop Casinos Now is backed by Oaklawn Racing and Gaming in Hot Springs and Southland Park Gaming and Racing in West Memphis. While the state doesn't have stand-alone casinos, electronic games of skill are allowed at both Oaklawn and Southland.
Chuck Lange, chairman of the Committee to Protect Arkansas Values/Stop Casinos Now, said, "We are very pleased that the Arkansas Supreme Court has rejected this amendment based on the flawed way that it was written.
"It was clear from the beginning that these two characters from Missouri teamed up with the Cherokee Indian Tribe from Oklahoma to rig the Arkansas Constitution for their own personal benefit.
They wrote into the amendment the specific names of their companies in a brazen attempt to monopolize gaming expansion in Arkansas.
And, they attempted to deceive Arkansas voters into believing that sports betting would be legal in Arkansas and that caused this amendment to be rejected by the court," Lange said in a written statement.
"Our campaign is disappointed in the court's decision today," said Robert Coon, a spokesman for the Arkansas Wins in 2016 and Arkansas Winning Initiative committees.
"Most importantly, it's a shame that the voters of Arkansas, including the more than 100,000 that signed our petitions, are being denied the opportunity to vote on an amendment that would create thousands of jobs and more than $120 million in new tax revenue for the state and local communities," he said in a written statement.
Republican Attorney General Leslie Rutledge "respectfully disagrees with the Arkansas Supreme Court's decision today to disqualify" the proposed casino amendment, Rutledge spokesman Judd Deere said in a written statement.
Rutledge takes very seriously her responsibility to certify or reject ballot titles and believes that this measure met the standard of being impartial, honest and not misleading to the voters, Deere said.
Justice Karen Baker, who wrote the court's majority opinion, said the amendment's ballot title informs voters that the amendment "will permit sports gambling, as well as any type of wagering allowed in Nevada, which necessarily includes wagers on sports."
However, the federal Professional and Amateur Sports Protection Act "prohibits sports gambling in Arkansas," she said.
"Accordingly, the amendment's language clearly conflicts with federal law that prohibits sports gambling in Arkansas," she said.
"Yet the ballot title does not inform the voters that the amendment violates federal law.
"The ballot title in this case does not honestly and accurately reflect what is contained in the proposed amendment. ... [W]e conclude the ballot title of the proposed amendment is insufficient. It fails to convey to the voter the scope and import of the proposed measure."
Baker wrote that any petition asking the court to rehear this case must be filed within five days of Thursday.
Justices Paul Danielson, Josephine Hart and Robin Wynne and Special Justice Warren Dupwe agreed with Baker's majority opinion. Chief Justice Howard Brill concurred. Justice Rhonda Wood dissented.
Dupwe was appointed as a special justice by Gov. Asa Hutchinson, after Justice Courtney Goodson recused from the case.
Last week, special master John Jennings, who was appointed by the court to review Committee to Preserve Arkansas Values/Stop Casinos Now's other challenge to the signatures of registered voters, concluded that Martin's office erred in July by granting the sponsors of the amendment 30 more days to gather signatures on petitions and in September by certifying the amendment for the general election ballot.
Jennings said the errors stemmed from Martin's office improperly counting numerous signatures as valid. The casino proponents have said they disagree with Jennings' findings. The court didn't issue a ruling regarding the signatures on Thursday.
Hutchinson told reporters that he respects the high court's rulings.
"If we have learned anything, it is very important to have a fair ballot title, so the public can honestly evaluate and vote on an initiative, so you just have to accept their opinion," the governor said. "I was not in favor of the casino amendment, so I guess in some ways that's good news."
In addition to allowing two racetracks that offer casino-style gambling, the state has operated a lottery to raise money for college scholarships since 2009 under Amendment 87 to the Arkansas Constitution.
Arkansas Winning Initiative and Arkansas Wins in 2016 reported spending more than $1.5 million through Aug. 31, while the Committee to Preserve Arkansas Values/Stop Casinos Now reported spending $33,310 through Aug. 31, according to their latest reports on the Arkansas Ethics Commission's website.
A Section on 10/14/2016