Arkansas casino license battle sets record with $30 million in campaign funding

Industry

Campaign spending for and against a high-stakes casino licensing ballot initiative in Arkansas has reached a record-breaking $30 million, making it the most expensive initiative in the state’s history. Issue 2, which could rescind a Pope County casino license, has garnered massive financial backing from stakeholders, reflecting the intense debate over casino expansion in the region.

According to the Arkansas Ethics Commission, contributions from both sides have surpassed previous records for state campaigns. Leading the opposition, Local Voters in Charge, a coalition funded primarily by the Choctaw Nation, has contributed $17.6 million to block the license. On the pro-license side, Investing in Arkansas, backed by Cherokee Nation Businesses (CNB), has raised $12.5 million, while the Arkansas Canvassing Compliance Committee contributed an additional $776,575 in support.

The level of spending far exceeds that of past Arkansas campaigns, such as the $12.4 million spent on a recreational marijuana initiative in 2022 and the $9.7 million spent in 2018 to legalize casinos across four counties. While the three other licenses granted in 2018 have since launched operations, the Pope County license has been plagued by legal challenges and local opposition.

Unlike many gambling-related ballot measures, Issue 2 seeks not to expand gambling but rather to retract a license already granted. Awarded by the Arkansas Racing Commission in June, the license allows CNB to develop a $300 million casino. However, the Choctaw Nation, which runs casinos along the Oklahoma-Arkansas border, is working to prevent its nearby competitor from moving forward.

After surviving several legal challenges, the fate of the Pope County casino now rests with voters. If passed, Issue 2 would prevent CNB from proceeding and would require any future gambling expansions to receive direct voter approval.

The campaign is part of a growing trend of high-cost ballot initiatives related to gambling in the U.S. Neighboring Missouri has also seen record-breaking spending, with $55 million poured into a contested sports betting initiative. On a larger scale, California’s record $450 million campaign to legalize sports betting in 2022 ended in defeat.

As Arkansas voters head to the polls, Issue 2’s outcome will have significant implications for the future of gambling expansion in the state and may signal the continued escalation of financial stakes in casino-related initiatives across the country.

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