Fayetteville chamber against casino amendment

FAYETTEVILLE -- The chamber opposes a proposed initiative that, if approved, would amend the Arkansas Constitution to allow casino gambling in three counties, including Washington.

Steve Clark, executive director of the Fayetteville Chamber of Commerce, said Wednesday casino gambling doesn't fit with the region's growth plans and would alter the constitution to unfairly benefit a couple of out-of-state interests.

Betting on the come

The Arkansas Three New Casinos Amendment, also known as Issue No. 5, is expected to be on the November 8 ballot as an initiated constitutional amendment. If passed, the amendment would allow three casinos to operate, one in Boone County, one in Miller County, and one in Washington County.

The casino in Washington County would be operated by the Cherokee Nation. Any gaming permitted at a casino in Louisiana, Mississippi, Missouri, Nevada, Oklahoma, Tennessee, or Texas would be permitted at the the three Arkansas casinos.

Issue No. 5 would establish an Arkansas Gaming Commission to regulate the casinos. A tax would be levied on the casino’s net gaming receipts, with 18 percent of receipts going to the state, 0.5 percent to the county in which the casino is located, and 1.5 percent to the town in which the casino is located.

Arkansas voters have rejected previous attempts to establish casinos. In 2012, the Arkansas Supreme Court invalidated two casino-authorizing initiatives before the votes were tabulated. State law permits some forms of electronic wagering as long as local voters approve them. Voters have approved electronic wagering at Oaklawn, the horse racing track in Hot Springs, and at Southland, the dog racetrack in West Memphis.

Source: Balletopia and staff reports

"We believe it isn't good for economic development in Northwest Arkansas," Clark said. "Also, it's bad policy. You just don't need to write into the Arkansas Constitution the names of businesses, particularly businesses that are not from Arkansas."

Arkansas Wins in 2016, the group formed to support the measure, argues the amendment will encourage economic development and bring in additional tax revenue.

"We released a study this week that estimated that Washington County, specifically, would benefit from 1,300 new direct jobs as a result of a new casino property there and those are jobs with wages and benefits of about $54 million," said Robert Coon, a spokesman for Arkansas Wins. "We think that's a substantial amount of economic development, not to mention the construction impact which would employ another 843 people with labor income of $37 million."

The study also estimates casinos would generate $122 million in taxes annually, Coon said.

Clark said the region's economic development focus is on education, medicine and innovation and should stay there.

"We all have plans that say this is the way we want to grow and these are the businesses we want to attract, and we have not once said we want to attract tourism jobs centered around gambling. Ever." Clark said. "None of us have said for our region this is a business or industry we need to attract."

The chamber's board unanimously adopted a resolution against the initiative, Clark said. Fayetteville Mayor Lioneld Jordan and Springdale Mayor Doug Sprouse also oppose the amendment.

The University of Arkansas system hasn't taken a position on the issue. The Washington County Quorum Court is expected to take up a resolution opposing the measure at its next meeting.

"Our board is made up of 20 members and they represent small businesses and medium-sized businesses and large employers. They represent professional employees, they represent legacy businesses, people who have been here 50 years and people who've been here five months," Clark said. "To the business, they all said no."

Clark said chamber members also have concerns about public safety, 24-hour alcohol sales, sustainability and traffic issues. They don't believe casinos would bring the high-paying jobs to the area that backers promise, but rather lower paying service sector jobs.

Casinos wouldn't benefit the region's tourism industry and could actually hurt the hospitality industry by taking their employees, Clark said.

"We're not missing tourists. We've got plenty," Clark said. "Our income from advertising and promotion or our hotel, motel and restaurant sector is going up, it's not going down."

Clark was joined Wednesday by State Rep. Charlie Collins, R-Fayetteville, and Joel Coon, who's with Protect Arkansas Values, a group opposing the proposal. Coon is no relation to Robert Coon.

"What's unusual is the idea of saying this individual company has the right to earn monopoly-like profits and also sell that right to anyone they choose, not anyone approved by the people of Arkansas or the Legislature," Collins said. "So that opens the door to criminals, outsiders or even worse."

Collins said a constitutional amendment would force casinos on communities that may not want them and would give special privileges to specific individuals and private companies by writing them into the state constitution.

"It's egregiously wrong for the people of Arkansas," Collins said. "It literally takes their voice away not just temporarily, not just for a one-time decision but permanently via the Constitution of the state of Arkansas. It's appalling."

Arkansas Wins contends they're giving voters a voice in how the law is written by giving them an opportunity to amend the constitution.

"Casino gaming in and of itself is prohibited by the constitution so the only way to bring casinos to Arkansas is to amend the Constitution," Robert Coon said. "That's what we're doing. We feel like the issue before voters gives them the choice of bringing casinos here to bring tax revenue and jobs back from other states where it's going today."

Robert Coon said Oaklawn and Southland have tremendous influence and have controlled the gaming in Arkansas for a long time.

Oaklawn Racing and Gaming in Hot Springs has a horse track and casino. Southland Park Gaming and Racing is a casino and greyhound racetrack in West Memphis.

"Our approach is to give the people that choice, to empower the voters to make a choice that's right for Arkansas and not just Oaklawn and Southland," Robert Coon said.

NW News on 10/13/2016

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