Cherokee Nation Businesses, LLC; And Arkansas Racing Commission v. Gulfside Casino Partnership

2021 Ark. 183, 632 S.W.3d 284
CourtSupreme Court of Arkansas
DecidedOctober 21, 2021
StatusPublished
Cited by6 cases

This text of 2021 Ark. 183 (Cherokee Nation Businesses, LLC; And Arkansas Racing Commission v. Gulfside Casino Partnership) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cherokee Nation Businesses, LLC; And Arkansas Racing Commission v. Gulfside Casino Partnership, 2021 Ark. 183, 632 S.W.3d 284 (Ark. 2021).

Opinion

Digitally signed by Susan P. Williams DN: c=US, st=Arkansas, l=Little Rock, ou=Reporter of Decisions, o=Arkansas Supreme Court, cn=Susan P. Williams, email=susan.williams@ar Cite as 2021 Ark. 183 courts.gov Reason: I attest to the accuracy and integrity of SUPREME COURT OF ARKANSAS this document No. CV-21-289 Date: 2022.03.15 13:35:37 -05'00' Adobe Acrobat version: 2021.011.20039 Opinion Delivered: October 21, 2021

CHEROKEE NATION BUSINESSES, LLC; AND ARKANSAS RACING COMMISSION APPEAL FROM THE PULASKI APPELLANTS COUNTY CIRCUIT COURT [NO. 60CV-19-5832] V. HONORABLE TIMOTHY DAVIS FOX, GULFSIDE CASINO PARTNERSHIP JUDGE APPELLEE

REVERSED AND DISMISSED.

KAREN R. BAKER, Associate Justice

This appeal stems from ongoing litigation for the sole casino license for Pope County,

Arkansas. The instant appeal returns to us a second time after our previous reversal and remand.

Cherokee Nation Businesses, LLC v. Gulfside Casino P’ship, 2021 Ark. 17, at 9, 614 S.W.3d 811,

817 (“CNB I”). On June 28, 2021, the parties filed a joint motion to expedite this appeal,

which we granted on July 2, 2021.

The history of the matter begins with Arkansas Constitutional Amendment 100, “The

Arkansas Casino Gaming Amendment of 2018,” which was approved by voters in November

2018 and became effective on November 14, 2018. The Amendment provides that appellant,

the Arkansas Racing Commission (“ARC”), is to award a casino license to one entity to operate

a casino in Pope County. Relevant to this litigation, in December 2018, appellee, Gulfside

Casino Partnership (“Gulfside”), obtained letters of support from outgoing Pope County Judge Jim Ed Gibson and Russellville Mayor Randall Horton, both of whom were in office at the

time and whose tenures ended on December 31, 2018.

On February 21, 2019, the ARC adopted Rule 2.13(5)(b) of the ARC—Casino Gaming

Rules codified at Ark. Admin. Code 006.06.5-2 § 2.13(5)(b) (Westlaw 2019) (sometimes

referred to as “the Rule”), which provides that the letters of support must be from the county

judge, quorum court, or mayor holding office at the time of the submission of an application

for a casino license. On March 5, 2019, the General Assembly passed Act 371 of 2019, which

is identical to Rule 2.13(5)(b). The Act provides that “the Arkansas Racing Commission shall

require a casino applicant for a casino in Pope County . . . to submit: . . . a letter of support

from the county judge or a resolution of support from the quorum court, and from the mayor

. . . holding office at the time of the submission of an application for a casino license.” Act 371

became effective on March 8, 2019, and is codified at Ark. Code Ann. § 23-117-101 (Supp.

2021).

On March 26, 2019, the ARC opened an application period from May 1 through May

30, 2019. Gulfside and four other applicants, including appellant, Cherokee Nation Businesses,

LLC (“CNB”), applied for a casino license in May 2019. At that time, neither Gibson nor

Horton was in office. On June 13, 2019, the ARC denied all five applications. Gulfside appealed

to the ARC. After a hearing, on August 15, 2019, the ARC denied Gulfside’s administrative

appeal.

Also on August 15, Gulfside appealed and filed the underlying litigation in circuit court

challenging the denial of a license. Gulfside filed suit pursuant to Arkansas Code Annotated

section 25-15-212 (Supp. 2021) regarding review of an agency adjudication; Arkansas Code

Annotated section 25-15-207 regarding review of an agency rule in an action for declaratory

2 judgment; and Arkansas Code Annotated section 16-111-102 (Repl. 2016), the Arkansas

Declaratory Judgment Act. In its complaint, Gulfside sought relief (1) declaring that the Rule

is unconstitutional; (2) declaring that the statute is unconstitutional; and (3) ordering ARC to

grant Gulfside the license.

On August 23, 2019, CNB filed a motion to intervene in Gulfside’s litigation, which

the circuit court denied. From the circuit court’s order denying intervention, CNB brought an

interlocutory appeal. On February 4, 2021, we held that CNB “is entitled to intervention as of

right under Rule 24(a)(2). The circuit court’s order is reversed in full and remanded.” CNB I.

On July 14, 2020, in a related matter, Cherokee Nation Businesses, LLC v. Arkansas Racing

Commission, Case No. CV-20-438, we granted in part a petition for writ of certiorari and

vacated the circuit court’s orders on the petitioners’ postjudgment motions for lack of

jurisdiction, which found that CNB/Legends was not a qualified casino applicant.

Following remand and our holding that CNB was entitled to intervene, the instant case

returned to the circuit court and all three parties filed motions for summary judgment. Gulfside

again challenged the constitutionality of the Act, asserting that the Rule and the Act added a

requirement beyond that provided in the Amendment and contended that its application

satisfied Amendment 100’s requirements. The ARC and CNB asserted that the rules and statutes

at issue are constitutional and consistent with the Amendment. On May 7, 2021, the circuit

court held a hearing. On May 21, the circuit court granted in part and denied in part Gulfside’s

motion for summary judgment and entered an order stating in pertinent part:

The court grants the declaratory judgment requested . . . that a portion of Rule 2.13(5)(b) of the Casino Gaming Rules is unconstitutional for imposing an additional requirement on applicants not contained in Amendment 100.

...

3 The unconstitutional portion of Rule 2.13(5)(b) which is ordered stricken is the phrase, “shall be dated and signed by the County Judge, Quorum Court members, or Mayor holding office at the time of the submission of an application for a casino gaming license.” Additionally, the court grants the declaratory judgment . . . that A.C.A. 27-117-101(b) be declared unconstitutional.

In sum, the circuit court granted Gulfside relief on counts 1 and 2, declaring that the

Rule and the Act were unconstitutional because they impose an additional qualification to

Amendment 100. The court denied Gulfside relief on count 3––its request for injunctive relief

against the ARC. From that order, only CNB and the ARC appeal and present one issue:

whether the circuit court erred in its interpretation of Amendment 100. We reverse and dismiss

for the reasons that follow.

I. Background

We begin our analysis by identifying the Amendment and the applicable rule and statute.

A. Amendment 100

Amendment 100 contains eleven sections. Sections 2, 3, and 4 are relevant to this appeal.

First, section 2 defines “casino applicant”:

(b) “Casino applicant” is defined as any individual, corporation, partnership, association, trust, or other entity applying for a license to conduct casino gaming at a casino.

Second, section 3 provides the General Assembly with the authority to pass laws and

appropriate funds for casino gaming and states in pertinent part:

(c) To fulfill the purposes of this Amendment, the Arkansas General Assembly shall from time to time enact laws, and appropriate monies to or for the use of the Arkansas Racing Commission. Initial laws and appropriations enacted by the General Assembly pursuant hereto shall be in full force and effect no later than June 30, 2019.

4 Third, section 4, “Licensing of casinos and casino gaming,” provides the ARC with

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2021 Ark. 183, 632 S.W.3d 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cherokee-nation-businesses-llc-and-arkansas-racing-commission-v-gulfside-ark-2021.