AG rejects title of ballot issue linking casinos to road funds

Citing several “ambiguities” in wording, Attorney General Leslie Rutledge on Thursday rejected the popular name and ballot title for a proposed constitutional amendment that would allow up to three casinos in Arkansas.

The private group proposing the amendment, which also would direct much of the taxes on gambling profits to the Arkansas Department of Transportation, expected Rutledge to reject the proposal’s first iteration, said Alex Gray, attorney for the Driving Arkansas Forward ballot question committee.

“We are reviewing this opinion, and we appreciate the constructive feedback provided by Attorney General Rutledge,” Gray said. “We will address her concerns and resubmit the proposal for certification in the near future.”

The attorney general is required under state law to certify the popular name and ballot title of proposed constitutional amendments before sponsors can begin gathering signatures to qualify the measure for November’s general election.

Primarily, Rutledge expressed concern about wording of the proposed popular title — “The Arkansas Casino Gaming and Highway Funding Amendment of 2018.” The attorney general opined that using the phrase “Highway Funding Amendment” may not fairly represent the amendment.

The proposal would permit three casino licenses to be issued by a proposed “lottery division” in the state Department of Finance and Administration. Applicants would be limited to locating in Crawford, Crittenden, Jefferson, Miller, Mississippi, Pope, Union or White counties. Only one casino would be permitted in a county.

Annual gambling receipts would be subject to a 12 percent tax under the proposal, and 65 percent of that tax revenue would go to a state fund dedicated to roads — 30 percent of which would be split by the county and city where the casino operates.

The remaining 35 percent of the gambling tax proceeds would be divided between the community where the casino is located and a proposed lottery division. The county where the casino sits would receive 10 percent; the city or town would receive 22.5 percent; and the lottery division would get the remaining 2.5 percent.

Driving Arkansas Forward estimates that the measure could raise about $45 million annually for the Transportation Department.

Rutledge in her rejection letter also said the meanings of “casino” and “casino gaming” were unclear.

Arkansas Supreme Court justices in 2016 rejected a proposed constitutional amendment that would have allowed three casinos in southwest and Northwest Arkansas. The high court ruled 6-1 that the ballot title was insufficient.