Arkansas Casinos

Issue 4 not the best plan for exanded gambling

Over the years, Arkansas has seen several proposed constitutional amendments to legalize casino gambling. Most never got to the ballot. And that’s good. Because, for the most part, they were written to give the backers a monopoly on casinos in the state.

While folks can disagree on whether casinos are good or bad for Arkansas, we don’t see how anyone can support writing a lucrative monopoly into the state constitution.

The last time such a proposal came before voters was in 2000, and it was soundly defeated. In November, though, voters will again have the opportunity to vote on casinos, only this time things are a bit different.

Issue 4 would allow casino gambling at the state’s two race tracks, Oaklawn in Hot Springs and Southland in West Memphis, as well as authorizing casinos in Jefferson and Pope counties. The proposal also authorizes sports betting at the venues.

The groups behind the ballot initiative—the Driving Arkansas Forward and Arkansas Jobs Coalition committees—say the idea is to keep gambling dollars from flowing across state lines and create jobs.

This time there is no one company trying to monopolize casino gambling—aside from the race tracks that could be grandfathered in. Potential operators for the other two casinos (both the Quapaw tribe and the Cherokee Nation have expressed interest) would have to meet certain qualifications.

But there are problems with this ballot initiative as well. It doesn’t give the state racing commission as much power to regulate casinos as they currently have over race tracks. And the proposal sets the tax rates for the casinos and determines where that money will go.

Frankly, we would be more confident if things like that were left to the state. If Arkansas is to have casinos, there should be strong state oversight.

Also, it requires a casino license be issued in Pope and Jefferson counties. The successful applicant would have to have support from city and county officials, but the people don’t have much say-so in the matter. What if the majority of Pope or Jefferson county residents don’t want those casinos? And what about other areas of the state? We imagine more cities and counties will want in on the perceived opportunity at some point.

The proposal is probably well-intentioned—more so than previous efforts. But voters will have to consider not only whether Arkansas should legalize casinos, but whether this initiative is the right plan for that expansion of gambling. In our view, the answer to the second question is no.