Case Overview
The federal lawsuit, Cherokee Nation Businesses, LLC v. State of Arkansas, case number 4:24-cv-969-DPM, is being adjudicated in the U.S. District Court for the Eastern District of Arkansas, presided over by Judge D.P. Marshall Jr. Filed on November 8, 2024, the case challenges the constitutionality of Arkansas Issue 2, also known as Amendment 104, which was approved by 56% of Arkansas voters on November 5, 2024, and took effect on November 13, 2024. This amendment revoked the casino license previously granted to Cherokee Nation Businesses (CNB) for a proposed Legends Resort & Casino Arkansas in Pope County and mandated countywide voter approval for future casino licenses.
The plaintiffs include Cherokee Nation Businesses, LLC, Cherokee Nation Entertainment, LLC (CNE), and Jennifer McGill, a registered voter in Pope County. The defendants are the State of Arkansas, Governor Sarah Huckabee Sanders in her official capacity, the Arkansas Racing Commission, and its members: Alex Lieblong, Mark Lamberth, Steve Anthony, Denny East, Michael Post, Bo Hunter, and Steve Landers, all in their official capacities. An amicus party, Local Voters In Charge, a group opposing the casino, has also been noted in court documents.
A three-day bench trial began on March 25, 2025, and concluded oral arguments on March 27, 2025. Judge Marshall indicated a decision was expected by late April 2025, but as of June 7, 2025, no ruling has been issued. CNB argues that Amendment 104 violates the U.S. Constitution’s Due Process, Equal Protection, Takings, and Contract Clauses by revoking their license without proper procedure or compensation. The state defends the amendment as a valid exercise of voter authority, asserting that the license, granted under Amendment 100 in 2018, was not intended to be permanent.
| Case Detail | Information |
|---|---|
| Case Number | 4:24-cv-969-DPM |
| Court | U.S. District Court, Eastern District of Arkansas |
| Judge | D.P. Marshall Jr. |
| Filing Date | November 8, 2024 |
| Trial Dates | March 25–27, 2025 |
| Plaintiffs | Cherokee Nation Businesses, LLC; Cherokee Nation Entertainment, LLC; Jennifer McGill |
| Defendants | State of Arkansas; Governor Sarah Huckabee Sanders; Arkansas Racing Commission; Commission Members |
Constitutional and Legal Questions
Cherokee Nation Businesses (CNB) bases its challenge on several constitutional provisions, arguing that Amendment 104 unlawfully revoked their casino license:
- Due Process Clause (Fifth and Fourteenth Amendments): CNB claims that the revocation of their license without a fair process or opportunity to be heard violates their procedural due process rights. They argue that the license, granted on June 27, 2024, by the Arkansas Racing Commission, constituted a protected property interest.
- Equal Protection Clause (Fourteenth Amendment): CNB asserts that Amendment 104 unfairly singles out the Pope County license, treating it differently from licenses in Crittenden, Garland, and Jefferson counties, without a rational basis, thus discriminating against CNB.
- Takings Clause (Fifth Amendment): The plaintiffs contend that the revocation of their license constitutes a taking of their property without just compensation, as they had invested significant resources based on the license’s validity.
- Contract Clause (Article I, Section 10): CNB argues that the license represents a contractual agreement with the state, and Amendment 104 impairs this contract by retroactively nullifying their rights.
The State of Arkansas defends Amendment 104 as a legitimate exercise of the people’s power to amend the state constitution. State attorneys, as noted in coverage by , question whether Amendment 100, which authorized the Pope County license in 2018, granted permanence to the license. They argue that the state’s authority to regulate gaming includes the ability to revoke licenses through constitutional amendments, and that such actions do not violate federal constitutional protections. The state also asserts sovereign immunity, leading to the dismissal of the State of Arkansas and the Arkansas Racing Commission as defendants, though individual officials remain in the case.
No amicus briefs were identified in the available sources, though Local Voters In Charge, a group opposing the casino, has filed a motion to intervene as an amicus party, as noted in court documents on .
Issue 2 / Amendment 104 Context
Amendment 104, passed on November 5, 2024, with 56% voter approval, amended Arkansas Constitution’s Amendment 100, which had authorized four casino licenses in 2018 for Crittenden, Garland, Jefferson, and Pope counties. The text of Amendment 104, as detailed on Ballotpedia, includes:
- Reducing the number of casino licenses from four to three by repealing the authorization for a casino in Pope County.
- Revoking any casino license issued for Pope County before November 13, 2024.
- Requiring countywide special elections for future casino licenses in counties other than Crittenden, Garland, or Jefferson, with majority voter approval needed.
The campaign for Issue 2 was contentious, with significant financial backing from the Choctaw Nation of Oklahoma, which reportedly contributed to efforts to pass the amendment, as noted in a report. The Choctaw Nation, having previously competed for the Pope County license, supported the measure, possibly to limit competition near their Oklahoma operations. Conversely, CNB and local officials, such as Pope County Judge Ben Cross, opposed the amendment, arguing it undermined economic development. Cross spoke at a rally on October 23, 2024, urging voters to reject Issue 2, as reported by the . Earlier attempts to remove Pope County as a casino site in 2022 failed due to insufficient signatures, highlighting long-standing local opposition.
Legal precedents for voter-approved amendments revoking licenses are limited, but cases like Cherokee Nation v. Georgia (1831) and United States v. Cherokee Nation (1987) establish that tribal rights can be subject to federal and state authority, though constitutional protections apply to property and contract rights.
Judge D.P. Marshall Jr. Profile
Judge Denzil Price Marshall Jr., born in 1963 in Memphis, Tennessee, has a robust legal background. He earned a Bachelor of Arts from Arkansas State University in 1985, a Master of Science from the London School of Economics in 1987, and a Juris Doctor from Harvard Law School in 1989. He clerked for Judge Richard S. Arnold on the Eighth Circuit from 1989 to 1991, practiced law at Barrett & Deacon in Jonesboro, Arkansas, from 1991 to 2006, and served as an associate judge on the Arkansas Court of Appeals from 2006 to 2010. Nominated by President Barack Obama, he joined the U.S. District Court for the Eastern District of Arkansas in 2010 and served as chief judge from 2019 to 2023, as detailed on .
While specific rulings on constitutional or tribal issues are not extensively documented in the sources, Marshall’s experience on the Arkansas Court of Appeals and as a federal judge suggests familiarity with administrative and constitutional law. For example, he handled a case involving school district compliance under federal supervision, suggesting short hearings for efficiency, as noted on . His tenure as chief judge indicates a pragmatic approach to complex legal disputes.
Current Status
The bench trial for Cherokee Nation Businesses, LLC v. State of Arkansas began on March 25, 2025, and concluded oral arguments on March 27, 2025, as reported by . Judge Marshall requested post-trial briefs and indicated a decision would be issued by late April 2025. However, as of June 7, 2025, no ruling has been announced, suggesting a delay possibly due to the complexity of the constitutional issues or the need for additional deliberation. Testimony during the trial included over 2.5 hours from CNB’s CEO, Chuck Garrett, and sealed testimony from other witnesses regarding investments in the casino project, as noted in . Speculation on the delay centers on the intricate balance between state sovereignty and federal constitutional protections.
Potential Outcomes and Implications
If Judge Marshall rules in favor of CNB, the Pope County casino license could be restored, allowing the construction of the $300 million Legends Resort & Casino Arkansas in Russellville. This would likely bring economic benefits, including jobs and tax revenue, to Pope County, but could face continued opposition from groups like Local Voters In Charge. If the court upholds Amendment 104, the license remains revoked, and future casino licenses would require local voter approval, potentially deterring gaming development in Pope County.
Either outcome is likely to be appealed to the Eighth Circuit Court of Appeals, given the significant legal and economic stakes. A ruling in favor of CNB could set a precedent protecting tribal and private entities from retroactive license revocations, while a ruling for the state could affirm the power of voter initiatives to alter existing regulatory frameworks. Economically, the casino’s construction could generate significant investment, with CNB committing at least $225 million, but local opposition may persist, as evidenced by past campaigns. The case could also influence future tribal gaming expansions and the use of state amendments to regulate industries.