Three new casinos that would be authorized by a proposed constitutional amendment would create thousands of jobs and raise $122 million in annual tax revenue for state and local governments, according to a study released Tuesday by the Arkansas Wins in 2016 committee promoting the amendment.
But Chuck Lange, chairman of Committee to Protect Arkansas Values/Stop Casinos Now, which opposes the amendment, countered that the study "is political propaganda and not worth the paper it's printed on."
The Nov. 8 ballot proposal would authorize casinos in Boone, Miller and Washington counties. The casinos would be controlled by three limited liability companies owned by two Missouri businessmen, Jim Thompson of Blue Eye and Bob Womack of Branson. Cherokee Nation Entertainment would be involved in the Washington County casino.
The Arkansas Wins in 2016 committee released a study from economists Kyle Dean and Russell Evans of the Edmond, Okla.-based Economic Impact Group LLC a week after a special master appointed by the state Supreme Court issued a report of his findings into allegations raised by a lawsuit against the proposal.
Special master John Jennings concluded that Secretary of State Mark Martin's office erred in July by granting the sponsors of the amendment 30 more days to gather signatures on petitions and in September by certifying the amendment for the general election ballot. Jennings said the errors stemmed from Martin's office improperly counting numerous signatures as valid. The casino proponents have said they disagree with Jennings' findings. The Supreme Court will decide whether votes on the proposal are counted.
Economic Impact Group LLC's economists projected the three casinos and ancillary facilities would generate $768 million in revenue a year and provide 3,200 jobs paying Arkansas workers $134.4 million a year in wages and benefits.
They estimate that the casino operations would trigger $487 million in additional local spending from support industries and households, to produce a total annual statewide impact of $1.2 billion and to support 7,953 jobs paying $331 million a year in wages and benefits. They also projected that $122 million in annual tax revenue would be generated for state and local governments.
The state would receive $109.8 million of that revenue, while local governments would receive $12.2 million, said Robert Coon, a spokesman for the Arkansas Wins in 2016 and the Arkansas Winning Initiative committees backing the amendment.
"At a time when our elected leaders are searching for critical tax revenue to devote to education programs, roads and highways, health care services and income tax cuts, an influx of more than $122 million in new annual gaming tax revenue from the passage of Issue 5 cannot be overstated," Coon said in a written statement.
Economic Impact Group's LLC economists also project that capital expenditures on the three casinos will be $600 million, of which the developers estimate $450 million will be spent in Arkansas.
They estimate these capital expenditures will spur $257 million in additional local spending from support industries and households to produce a total statewide impact from construction of $707 million, supporting 5,084 jobs paying $222 million in wages and benefits during the construction phase. Construction of casinos generally takes between 12 and 15 months after they are approved, Coon said.
Coon declined Tuesday to say how much the study cost.
"We'll disclose that through the normal campaign reporting process," he said.
But Lange said, "This is nothing more than a desperate attempt by shady out-of-state opportunists whose scheme to rig our constitution in their favor is being widely rejected by Arkansans."
"The 'study/propaganda' was written and funded by people deeply connected to the Cherokee Nation, which has already obtained the rights to one of the casino licenses without any oversight from Arkansas voters," Lange said in a written statement.
"Dr. Evans and his research staff regularly engage in funded research for the state's Native American community including the Cherokee Nation, the Chickasaw Nation, and the Oklahoma Indian Gaming Association," Lange said.
But Coon countered that Lange's opposition group is a "front group" for the state's existing gambling operations -- Oaklawn Racing and Gaming and Southland Park Gaming and Racing -- and "is well aware that Issue 5 will have a significant economic impact on the state of Arkansas."
"Faced with the facts, they have once again chosen the low road of unfounded personal attacks," Coon said in a written statement. "Dr. Evans and Dr. Dean have extensive experience analyzing and measuring the economic impact of projects for a variety of gaming industry organizations. Their qualifications, experience and track record in this arena, and academic credentials reinforce the accuracy and reliability of their findings."
Metro on 10/12/2016