Did the Arkansas AG approve the 2018 ballot title for a constitutional amendment authorizing four casinos in Benton, Boone, Miller, and Pulaski Counties?

Plain-English summary

Randall Bynum asked the Arkansas Attorney General to certify the popular name and ballot title for a proposed constitutional amendment authorizing casinos at specified sites in Benton, Boone, Miller, and Pulaski Counties. The Attorney General rejected the submission because two central issues could not be fairly explained in a ballot title without changes to the measure itself.

First, the title identified Arkansas Gaming and Resorts, LLC as having agreements to purchase the sites, but it did not identify the current landowners, the agreement terms, the LLC's members, or the people who would benefit financially. The opinion stressed that approval could greatly increase the sites' value. It also noted that LLC membership was generally confidential under the cited law and could change before the election. Merely listing the members at the time of submission would not resolve that problem.

Second, the measure and title appeared to permit only four casinos at those properties. A provision empowering a new Gaming Commission to adopt licensing rules could also be read to allow additional casinos later. The Attorney General said the sponsor needed to make any exclusive right clear to voters. Because these ambiguities were in the proposal itself, she could not write a suitable substitute title and instructed the sponsor to redesign the proposal and title.

Currency note

This opinion addresses a proposed 2018 amendment that the Attorney General rejected. It does not establish present Arkansas casino licensing rights. Check the current constitution and gaming law for rules in force today.

Common questions

Why did the title's reference to Arkansas Gaming and Resorts, LLC fall short? It said the four sites were subject to purchase agreements with that LLC, but gave voters no information about the current owners, even the basic agreement terms, or who owned the LLC and would benefit if the amendment passed. The Attorney General considered the identity of beneficiaries important to an informed vote.

Could the sponsor fix the title by naming the LLC's members? The Attorney General said that alone would not work. Membership could change between submission and election day, leaving the beneficiaries uncertain when voters cast their ballots.

Would the amendment have allowed only four casinos?
The Attorney General could not tell. The popular name, title, and other provisions pointed toward four casinos at specified sites. The proposed Gaming Commission's authority to license casinos could also suggest later licenses for additional sites. She said the proposal needed to resolve that ambiguity.

Did the Attorney General decide whether casino gaming was a good idea? No. She expressly said the certification review did not address the proposal's merits, philosophy, or ideology. Her decision concerned whether voters could understand the amendment's effects from an accurate ballot title.

Could the Attorney General substitute her own title? No. She said the ownership and exclusivity issues were ambiguities in the measure itself. She rejected the proposed popular name and title and told the sponsor to redesign them.

Background and statutory framework

Ark. Code Ann. § 7-9-107 authorized the Attorney General to certify a proposed popular name and ballot title, substitute and certify them where practicable, or reject a misleading submission. The opinion applied the Arkansas Supreme Court's requirement that a title disclose facts material to voters' choice. It quoted Parker v. Priest on the need to identify direct benefits to a few private interests, then examined this proposal's unidentified beneficiaries and uncertain licensing scope.

Citations

• Ark. Code Ann. § 7-9-107 (Supp. 2017)
• Parker v. Priest, 326 Ark. 386, 931 S.W.2d 108 (1996)
• Becker v. Riviere, 270 Ark. 219, 604 S.W.2d 555 (1980)
• Bailey v. McCuen, 318 Ark. 277, 884 S.W.2d 938 (1994)

Source

• Landing page: https://arkansasag.gov/divisions/opinions-foia/attorney-general-opinions-search/

Original opinion text

STAT E OF ARKAN SAS
ATTORN EY G ENERAL
LES LI E RUTLED GE

Opinion No. 2018-049

May 8, 2018

Randall Bynum, Esq.
Dover Dixon Horne PLLC
425 West Capitol Avenue, Suite 3700
Little Rock, AR 72201

Dear Mr. Bynum:

I am writing in response to your request for certification, pursuant to Ark. Code Ann. § 7-9-107, of the popular name and ballot title for a proposed initiated measure.

At the outset, I wish to make clear to you that the decision to certify or reject a popular name and ballot title is in no way a reflection of my view of the merits of a particular proposal. I am not authorized to, and I do not, consider the merits of the measure when making a decision to certify or reject.

Arkansas Code Annotated section 7-9-107 authorizes my office to 1) certify the popular name and ballot title of a proposed measure, 2) substitute and certify the popular name and ballot title, if practicable, or 3) reject the entire submission if "the ballot title, or the nature of the issue, is presented in such manner that the ballot title would be misleading" to voters. 1 The purpose of my review under section 7-9-107 is to ensure that the popular name and ballot title honestly, intelligibly, and fairly set forth the purpose of the proposed amendment or act. 2 In this way, voters will have a fair understanding of the issues presented by reference to the ballot title alone. 3

1
Ark. Code Ann. § 7-9-107(c) (Supp. 2017).
2
See Arkansas Wom en's Political Caucus v. Riviere, 283 Ark. 463, 466, 677 S.W.2d 846, 848 ( 1948).

3
Becker v. Riviere, 270 Ark. 219, 226, 604 S.W.2d 555, 558 (1980) (internal citations omitted).

323 CEN TER STREET. SU ITE 200 · LI TTLE ROCK. ARKAN SAS 7220 1 TELEP HONE (501) 682-2007 ·FAX (50 1) 682-8084 ARKAN SASAG.GOV

Randall Bynum, Esq.
Opinion No. 2018-049
Page 2

Section 7-9-107 neither requires nor authorizes this office to make legal determinations concerning the merits of the proposed act or amendment, or concerning the likelihood that it will accomplish its stated objective. In addition, consistent with Arkansas Supreme Court precedent, unless the measure is "clearly contrary to law," 4 this office will not require that a measure's proponents acknowledge in the ballot title any possible constitutional infirmities. 5 Consequently, this review has been limited primarily to a determination, pursuant to the guidelines that have been set forth by the Arkansas Supreme Court, discussed below, of whether the popular name and ballot title you have submitted accurately and impartially summarize the provisions of your proposal.

REQUEST

You have requested certification, pursuant to Ark. Code Ann. § 7-9-107, of the following popular name and ballot title for a proposed constitutional amendment:

Popular Name

An Amendment to Allow Four Casinos to Operate in Arkansas, One Each at a Specifically Designated Location Within Each of the Following Four Counties:
Benton County, Boone County, Miller County, and Pulaski County

Ballot Title

An amendment to the Arkansas Constitution authorizing four casinos, one each at a specifically designated location in each of the following counties in Arkansas: Benton County, approximately 247 acres at 16994 Kincheloe Road, Siloam Springs; Boone County, approximately 62 acres at 13721, 13721A and 13781 Bird Lane, Omaha; Miller County, approximately 35 acres at 7815 U.S.
Highway 67 East, Texarkana; and Pulaski County, approximately 200 acres at 14121 Lawson Road, unincorporated Pulaski County; and as of April 16, 2018, where each property is subject to an agreement to be purchased by Arkansas Gaming and Resorts, LLC;

4
See Kurrus v. Priest, 342 Ark. 434, 445, 29 S.W.3d 669, 675 (2000); Donovan v. Priest, 326 Ark. 353, 359, 931S.W.2d119, 121 (1996); Plugge v. McCuen, 310 Ark. 654, 841S.W.2d139 (1992). 5 As part of my review, however, I may address constitutional concerns for consideration by the measure's proponents.

Randall Bynum, Esq.
Opinion No. 2018-049
Page 3

and subjecting the casinos to all applicable State laws and local ordinances related to health and building codes or related requirements, but providing that no local zoning, land use laws, subdivision regulations or similar provisions shall prohibit the development or operation of the casinos authorized by this Amendment; providing that this Amendment does not restrict the alienability of the properties and allowing an individual or entity to own an interest in more than one casino; providing that the casinos shall be licensed and regulated by the Arkansas Gaming Commission and that mere ownership of the properties does not give the right to operate a casino thereon; defining casino gaming as dealing, operating, carrying on, conducting, maintaining, or exposing for play any game played with cards, dice, equipment, or any mechanical, electromechanical, or electronic device or machine for money, property, checks, credit, or any representative value; creating the Arkansas Gaming Commission to license and regulate casinos and being comprised of five (5) commissioners, each appointed by the Governor for staggered 5-year terms; providing for the General Assembly to appropriate monies to or for the use of the Arkansas Gaming Commission; requiring each casino to pay to the Arkansas State Treasury a net casino gaming receipts tax equal to twenty percent (20%) of its annual net casino gaming receipts; and providing that the net casino gaming receipts tax revenue shall be distributed seventy percent (70%) to the State Highway and Transportation Department Fund or its successor fund, fifteen percent (15%) to be equally divided among all other counties in Arkansas in which a casino is not operating during the month for which the net casino gaming receipts tax is paid, eight percent (8%) to the General Revenue Fund, three percent (3 % ) to the Arkansas Economic Development Commission Industry Training Program or its successor program, one percent ( 1%) to the Arkansas Department of Human Services for gambling disorder prevention services, one percent ( 1%) to the county in which the casino is located, and two percent (2%) to the city or town in which the casino is located, or to the county if in an unincorporated area; defining annual net casino gaming receipts as gross receipts for a 12-month period from casino gaming less amounts paid out or reserved as winnings to casino patrons for that 12-month period; subjecting each casino to the same taxes, fees and assessments as any for-profit business located in the county or city or town in which the casino is located, provided that

Randall Bynum, Esq.
Opinion No. 2018-049
Page 4

the Arkansas Gross Receipts Act of 1941 and local gross receipts taxes shall not apply to casino gaming receipts, and that no additional state or local taxes, fees, or assessments shall be imposed on the casinos except as authorized in this Amendment; allowing a casino to operate any day for any portion or all of any day; acknowledging that current Arkansas law prohibits selling or complimentary serving of alcoholic beverages on Christmas Day, but allowing the selling or complimentary serving of alcoholic beverages in casinos during all hours the casino operates but otherwise subject to all applicable Arkansas laws involving the distribution and sale of alcohol; permitting the shipment into any county of Arkansas in which casino gaming is authorized of gambling devices shipped and delivered in accordance with applicable federal law; providing that the General Assembly shall not amend any provision of this Amendment; providing that the county in which a casino is to be located may prohibit such casino by an election in such county called by a petition signed by thirty eight percent (38%) of the registered voters of the county and providing that the collection of signatures for such petition shall not begin before November 7, 2018 and such petition shall be filed with the county clerk of said county by January 7, 2019, and if the petition is sufficient said election to be held within thirty (30) days of final legal actions regarding the sufficiency of the petition; rendering the provisions of this Amendment severable; declaring inapplicable all constitutional provisions and laws to the extent they conflict with this Amendment, but not otherwise repealing, superseding, amending, or otherwise affecting Amendment 84 (Bingo or Raffles) or Amendment 87 (State Lottery) to the Arkansas Constitution, or Arkansas Act 1151 of 2005 (Electronic Games of Skill).

GUIDELINES

The popular name is primarily a useful legislative device. 6 It need not contain detailed information or include exceptions that might be required of a ballot title, but it must not be misleading or give partisan coloring to the merit of the

6
Pafford v. Hall, 217 Ark. 734, 739, 233 S.W.2d 72, 75 (1950).

Randall Bynum, Esq.
Opinion No. 2018-049
Page 5

7 proposal. The popular name is to be considered together with the ballot title in determining the ballot title's sufficiency. 8

"It has long been regarded as axiomatic that the majority of voters, when called upon to vote for or against a proposed measure, will derive their information about its contents from an inspection of the ballot title immediately before exercising the right of suffrage."9 Accordingly, the ballot title must include an impartial summary of the proposed amendment or act that will give the voter a fair understanding of the issues presented. 10 According to the Court, a ballot title will not be legally sufficient unless it "adequately inform[ s]" the voters of the contents of a proposed amendment or act so that they can make a "reasoned decision in the voting booth." 11 A ballot title's failure to "honestly and accurately reflect what is contained in the proposed [initiated act or] Amendment" may lead the Court to conclude that the "omission is significant." 12 The Court has also disapproved the use of terms that are "technical and not readily understood by voters." 1 Without a definition of such terms in the ballot title, the title may be deemed insufficient. 14

Additionally, if information omitted from the ballot title is an "essential fact which would give the voter serious ground for reflection, it must be disclosed." 15 At the same time, however, a ballot title must be brief and concise; 16 otherwise voters

7
See, e.g., Chaney v. Bryant, 259 Ark. 294, 297, 532 S.W.2d 741, 743 (1976); Moore v. Hall, 229 Ark. 411, 316 S. W.2d 207 ( 1958). For a better understanding of the term "partisan coloring," see infra note 20. 8 May v. Daniels, 359 Ark. 100, 105, 194 S.W.3d 771, 776 (2004). 9 Wilson v. Martin, 2016 Ark. 334, 7, 500 S.W.3d 160, 166 (citing Christian Civic Action Committee v. McCuen, 318 Ark. 241, 884 S.W.2d 605 (1994)). 10 Becker v. Riviere, 270 Ark. 219, 226, 604 S.W.2d 555, 558 (1980) (internal citations omitted).
11
Lange v. Martin, 2016 Ark. 337, 500 S.W.3d 154, at n. 2.
12
Id. at 9, 500 S.W.3d at 159.
13
Wilson, 2016 Ark. 334 at *9, 500 S.W.3d at 167.
14
Id., 500 S.W.3d at 167.
15
Bailey v. McCuen, 318 Ark. 277, 285, 884 S.W.2d 938, 942 (1994).
16
See Ark. Code Ann.§ 7-9-107(b).

Randall Bynum, Esq.
Opinion No. 2018-049
Page 6

could run afoul of the statutory five-minute limit in voting booths 17 when other voters are waiting in line. 18 The ballot title is not required to be perfect, nor is it reasonable to expect the title to cover or anticipate every possible legal argument the proposed measure might evoke. 19 The title, however, must be "free of any misleading tendency whether by amplification, omission, or fallacy, and it must not be tinged with partisan coloring. " 20 The ballot title must be honest and 21 impartial, and it must conve~ an intelligible idea of the scope and significance of a proposed change in the law. 2

Furthermore, the Court has confirmed that a ballot title cannot be approved if the text of the proposed measure itself contributes to confusion and disconnect between the language in the popular name and the ballot title and the language in the measure. 23 The Court concluded that "internal inconsistencies would inevitably lead to confusion in drafting a popular name and ballot title and to confusion in the ballot title itself." 24 Where the effects of a proposed measure on current law are unclear or ambiguous, it is impossible for me to perform my statutory duty to the satisfaction of the Arkansas Supreme Court without ( 1) clarification or removal of the ambiguities in the proposal itself, and (2) conformance of the popular name and ballot title to the newly worded proposal.

17
Ark. Code Ann.§ 7-5-309(b)(l)(B) (Supp. 2017).
18
Bailey, 318 Ark. at 284, 884 S.W.2d at 944.
19
Id. at 293, 884 S.W.2d at 946-47.

20
Id. at 284, 884 S.W.2d at 942. Language "tinged with partisan coloring" has been identified by the Arkansas Supreme Court as language that "creates a fatally misleading tendency" (Crochet v. Priest, 326 Ark. 338, 347, 931 S.W.2d 128, 133 (1996)) or that "gives the voter only the impression that the proponents of the proposed amendment wish to convey of the activity represented by the words." Chrisf;an Ovic Action Committee, 318 Ark. at 249, 884 S.W.2d at 610. 21 Becker v. McCuen, 303 Ark. 482, 489, 798 S.W.2d 71, 74 (1990).
22
Christian Civic Action Committee, 318 Ark. at 245, 884 S.W.2d at 607 (internal quotations omitted). 23 Roberts v. Priest, 341 Ark. 813, 825, 20 S.W.3d 376, 382 (2000).

24 Id.

Randall Bynum, Esq.
Opinion No. 2018-049
Page 7

RESPONSE

In light of the Court's pronouncements, noted above, it is my opinion that a number of additions or changes to your ballot title are necessary in order to more fully and correctly summarize your proposal. I cannot, however, at this time, fairly or completely summarize the effect of your proposed measure to the electorate in a popular name or ballot title because of central, fundamental ambiguities in the text of the measure itself. Because of these significant issues, I again have not conducted a thorough, point-by-point review of your proposal. 25 Rather, I will point out what I view to be these baseline deficiencies with your submission.

DISCUSSION

A primary, fundamental problem with your proposal and your ballot title relates back to what I pointed out in my opinion on your previous submission26 regarding ownership of the properties your proposal identifies as the locations for casinos in Arkansas and who stands to benefit if your proposal were to be adopted. In that opinion, I stated my belief that it would be unrealistic and insufficient to expect voters to know, based on your proposed ballot title, who owns the land in each of 27 the counties where a casino and casino gaming would be authorized. In that opinion, I made it clear that:

[K]nowing who owns the land would ... be of critical importance to the voters, as the adoption of your proposed amendment would in all likelihood lead to an immense increase to the value of those properties. Thus, in my opinion, ownership of the properties must also be disclosed in a ballot title. The Court has on more than one occasion rejected ballot initiatives "that failed to disclose in the ballot title the direct benefits to a 'relatively few' special interests."28 As the Court stated, "the majority of voters will read a proposed amendment for the first, and only, time when they read it on the ballot. Thus, it is crucial that the ballot title not be misleading, and that it disclose enough information so that voters can make 'an

25
Cf Op. Att'y Gen. 2016-099.
26
Op. Att'y Gen. 2018-032.

27
Id. at pp. 8-9.
28
Id. (quoting Parker v. Priest, 326 Ark. 386, 388, 931 S.W.2d 108, 109 (1996)).

Randall Bynum, Esq.
Opinion No. 2018-049
Page 8

intelligent choice and be fully aware of the consequences of their vote. "' 29

In my opinion, this fundamental problem still exists with your current submission.

In your most recent submission, you state in your ballot title-but not in your measure's text-that the described tracts of land where casinos and casino gaming would be authorized are "subject to an agreement to be purchased" by a corporate entity called "Arkansas Gaming and Resorts, LLC." In my opinion, this bare "disclosure" is insufficient to meet the Court's standards in providing "enough information" so that they can make an intelligent choice and be fully aware of the consequences of their vote for a couple of reasons.

First, the voters are only told in the ballot title (not in the text itself) that the properties at issue are subject to a purchase agreement. Yet the voters still are not given information about who the current land owners are, as I mentioned to you before, nor are they made aware of even the most basic terms of this agreement (or agree~ents, if more than one, which is another aspect that is less than clear in your ballot title). It seems certain that these purchase agreements are contingent upon the electorate approving this measure, although that also is not clear from your ballot title. If this is indeed the case, however, I firmly believe that the Court would say that the electors have an interest regarding these purchase agreements in knowing what they are being asked to bless with their votes.

Second, the voters are only told-and again, only in the ballot title-that these lands would be purchased by the above-named limited liability company. Yet the voters are given no information in the ballot title as to who owns this LLC, who its members are, and generally who would stand to benefit financially from the adoption of this constitutional amendment. As the Court has stated, "[i]t is clear that the benefit to specific private interests can indeed be a matter [that] would give the voter 'serious grounds for reflection. "'30

Complicating the matter further is the fact that even the most dedicated, studious, and "research-the-issues" voter would be unable to learn who the LLC's members

29
Id (quoting Parker, 326 Ark. at 392, 931 S.W.2d at 111) (emphasis added).
30
Parker, 326 Ark. at 388, 931 S.W.2d at 109.

Randall Bynum, Esq.
Opinion No. 2018-049
Page 9

are, at least not through official channels. This is because Act 865 of 200?3 1 generally keeps the names of an LLC's members confidential. 32 In my opinion, this would put voters in the untenable position of being asked to approve a significant change to the constitution that would undoubtedly result in a substantial financial benefit to a relatively small number of people-potentially as few as one person-without being informed of or even being allowed to learn who these beneficiaries are.

When an initiated constitutional amendment, whether by design or in effect, creates a commercial monopoly, I believe the Court would deem it absolutely necessary that voters be given sufficient information about that in clear and unmistakable language so that they will be able to make a truly informed decision in the voting booth. But when there is no way for the voter to know or to learn who the people behind this commercial venture are, then the ballot title would be per se misleading and fatally flawed; that is, the voters would not be able to make a fully informed decision to grant a commercial monopoly to unknown and likely changing persons in what appears to be in perpetuity.

And this overarching problem cannot be simply remedied by merely naming the members of Arkansas Gaming and Resorts, LLC in your proposal and ballot title. This is, at least in part, because the LLC's membership can easily change between now and election day. There are simply too many variables, too many "moving parts," that could change before the voters step into the voting booth. And this aspect creates a virtual "permanent ambiguity" that would, in my opinion, preclude the writing of a successful ballot title.

Another fundamental ambiguity with your latest submission, in my view, concerns the scope of and limitations, if any, on casinos and casino gaming in Arkansas under your proposal. Specifically, it is unclear whether casinos at the four locations your proposed constitutional amendment authorizes would be the only casinos that would be allowed in the State.

31
Codified at Ark. Code Ann. §§ 26-18-303(14)(8) (Supp. 2017) and 26-54-105(h)(2) (Supp. 2017). 32 Under Act 865, the names of members of LLCs or other limited-ownership corporate entities organized under the "Small Business Equity Tax Pass Through Act" (Ark. Code Ann.§ 4-32-101 et seq. (Rep!. 2016 & Supp. 2017)) are confidential and are not open to public inspection and copying, except for members designated as the managing member, president, vice president, secretary, treasurer, or controller, although not necessarily all of them. The confidentiality afforded under the Act does not apply, however, if the entity has no registered agent for service of process.

Randall Bynum, Esq.
Opinion No. 2018-049
Page 10

Section 2(a) of your measure states that "[ c]asinos and casino gaming are hereby authorized in the State of Arkansas as provided in this Amendment." Section 4 of the amendment specifically mentions "[t]he four (4) casinos allowed under this Amendment .... " In summarizing these provisions, your proposed popular name states that your measure would "allow four casinos to operate in Arkansas[,]" and your ballot title states that your proposal is "[a]n amendment ... authorizing four casinos ... " at certain locations within the State.

All of these statements taken together suggest that the four casinos allowed under your proposal would be the only casinos that could be allowed in Arkansas-and only at those locations-thus constitutionally establishing an exclusive right to casino gaming in the State to those four properties and their owners.

The ambiguity arises in your proposed subsection 3(a) that would create an Arkansas Gaming Commission ("Commission"). That subsection states that the "regulation of the casinos authorized by this Amendment" would be vested in the Commission. Yet the next sentence states that the Commission would have the authority and duty to "adopt regulations to license and regulate casinos and casino gaming in Arkansas, including . . . the manner in which the Arkansas Gaming Commission considers applications for [the] issuance of casino licenses." This quoted phrase might lead voters to believe that the Commission would have the authority to eventually license additional casinos in Arkansas.

If it is your intention to write into the constitution the sole right to have casinos and casino-gaming only on the properties described in your proposal and for the properties' unknown owners-exclusive of all others-this must be made clear and properly relayed to the voters in your ballot title. In my opinion, the Court would likely find this aspect of your measure significant for the voters to know as something that would give voters "serious grounds for reflection."

In sum, it is my opinion that the Court would take a dim view of the dearth of information in your ballot title regarding the monopolistic nature of what is being proposed, and who would stand to benefit, perhaps quite handsomely, from such a dramatic change in the constitution. These are fundamental issues that I must question whether they can be adequately summarized for inclusion in a ballot title that would meet the Court's exacting standards.

CONCLUSION

The ambiguities noted above are not necessarily all the ambiguities contained in your proposal, but they are sufficiently serious to require me to reject your popular

Randall Bynum, Esq.
Opinion No. 2018-049
Page 11

name and ballot title. I am unable to substitute language in a ballot title for your measure due to these ambiguities. Further, additional ambiguities may come to light on review of any revisions of your proposal.

My office, in the certification of ballot titles and popular names, does not address the merits, philosophy, or ideology of proposed measures. I have no constitutional role in the shaping or drafting of such measures. My statutory mandate is embodied only in Ark. Code Ann. § 7-9-107, and my duty is to the electorate.

Based on what has been submitted, my statutory duty is to reject your proposed ballot title for the fore~oing reasons and instruct you to redesign the proposed measure and ballot title. 3

Sincerely,

~.=;;=>-
L. //?1--fa
LESLIE RUTLEDGE
Attorney General

Enclosure

33
Ark. Code Ann.§ 7-9-107(c).

Popular Name

AN AMENDMENT TO ALLOW FOUR CASINOS TO OPERA TE IN ARKANSAS, ONE EACH AT A SPECIFICALLY DESIGNATED LOCATION WITHIN EACH OF THE FOLLOWING FOUR COUNTIES: BENTON COUNTY, BOONE COUNTY, MILLER COUNTY, AND PULASKI COUNTY

Ballot Title

AN AMENDMENT TO THE ARKANSAS CONSTITUTION AUTHORIZING
FOUR CASINOS IN ARK.ANSAS, ONE EACH AT A SPECIFICALLY
DESIGN ATED LOCATION IN EACH OF THE FOLLOWING COUNTIES IN ARKANSAS: BENTON COUNTY, AN APPROXIMATEAPPROXIMATELY 247 ACRE AREA AS IDENTIFIED BY THE BENTON COUNTY ASSESSOR, AS OF MARCH 7, 2018, AS PARCEL NUMBERS 18 10408 000, 18 10494 000, 18 10447 000 and 18 10518 000, HAVING /'•, STREET ADDRESS OFACRES AT 16994 KINCHELOE ROAD, SILOAM SPRINGS, ARKANSAS AND MORE SPECIFICALLY DESCRIBED BY LEGAL DESCRIPTION IN THIS AMENDMENT; BOONE COUNTY, AN APPROXIMATEAPPROXIMATELY 62 ACRE AREA AS IDENTIFIED BY THE BOONE COUNTY ASSESSOR, AS OF MARCH 26, 2018 AS PARCEL NUMBERS 021 0794 3 002, 021 0794 3 OOOC, 021 07955 002C, 021 07939 000 and 021 07939 001, HAVING STREET ADDRESSES QFACRES AT 13721, 13721A AND 13781 BIRD LANE, OMAHA, ARKANSAS AND MORE SPECIFICALLY DESCRIBED BY LEGAL DESCRIPTION IN THIS AMENDMENT; MILLER COUNTY, AN APPROXIMATEAPPROXIMATEL Y 35 ACRE AREA AS IDENTIFIED BY THE MILLER COUNTY ASSESSOR, AS OF MARCH 26, 2018, AS A PORTION OF PARCEL NUMBER 0840020, HAVING A STREET ADDRESS OFACRES AT 7815 U.S. HIGHWAY 67 EAST, TEXARKANA, AR..f(ANSAS, AND MORE SPECIFICALLY DESCRIBED BY LEGAL DESCRIPTION IN THIS AMENDMENT; AND PULASKI COUNTY, AN APPROXIMATEAPPROXIMATELY 200 ACRE AREA AS IDENTIFIED BY
+HEACRES AT 14121 LAWSON ROAD, UNINCORPORATED PULASKI
COUNTY ASSESSOR, AS OF MARCH 21, 2018, AS PARCEL NUMBERS 44R0290000500, 44R0290000600, 44R0200006300 and 44R0300000100, LOCATED BETWEEN CRYSTAL VALLEY ROAD AND LAWSON ROAD, PULASKI COUNTY, ARKANSAS AND MORE SPEClFICALLY DESCRIBED BY LEGAL DESCRIPTION IN THIS AMENDMENT; ALL BEING; AND AS OF APRIL 16, 2018, WHERE EACH PROPERTY IS SUBJECT TO AN AGREEMENT TO BE PURCHASED BY ARKANSAS GAMING AND RESORTS, LLC; AND SUBJECTING THE CASINOS TO ALL APPLICABLE STATE LAWS AND LOCAL ORDINANCES RELATED TO HEAL TH AND BUILDING CODES, OR ANY RELATED REQUIREMENT AND PROVISIONSREQUIREMENTS, BUT PROVIDING THAT NO LOCAL ZONING, LAND USE LAWS, SUBDIVISION REGULATIONS OR SIMILAR PROVISIONS SHALL

PROHIBIT THE DEVELOPMENT OR OPERATION OF THE CASINOS
AUTHORIZED BY THIS AMENDMENT-AN-9~ PROVIDING THAT NGTHIS AMENDMENT DOES NOT RESTRICT THE ALIENABILITY OF THE PROPERTIES AND ALLOWING AN INDIVIDUAL OR ENTITY TO OWN AN INTEREST IN MORE THAN ONE CASINO SHALL BE LOCATED IN AN AREA ZONED EXCLUSIVELY RESIDENTIAL AS OF JANUARY l, 2018; PROVIDING THAT THE CASINOS SHALL BE SUBJECT TO THE LAWS ENACTED BY THE GENERAL ASSEMBLY IN ACCORD WITH THIS AMENDMENT LICENSED AND REGULATIONS PROMULGATEDREGULA TED BY THE ARKANSAS GAMING COMMISSION IN ACCORD WITH LA\VS ENACTED BYAND THAT MERE OWNERSHIP OF THE GENERAL ASSEMBLYPROPERTIES DOES NOT GIVE THE RIGHT TO OPERA TE A CASINO THEREON; DEFINING CASINO GAMING AND GAMING AS DEALING, OPERATING, CARRYING ON, CONDUCTING, MAINTAINING, OR EXPOSING FOR PLAY ANY GAME PLA YEO WITH CARDS, DICE, EQUIPMENT, OR ANY MECHANICAL, ELECTROMECHANICAL, OR ELECTRONIC DEVICE OR MACHINE FOR MONEY, PROPERTY, CHECKS, CREDIT, OR ANY REPRESENTATIVE VALUE; CREA TING THE ARKANSAS GAMING COMMISSION TO LICENSE AND REGULA TE CASINOS IN ACCORD WITH LA\VS ENACTED BY THE GENERAL ASSEMBLY, WITH THE ARKANSAS
GAMING COMMISSIONAND BEING COMPRISED OF
FIVE (5)
COMMISSIONERS, EACH APPOINTED BY THE GOVERNOR FOR
STAGGERED 5-YEAR TERMS; PROVIDING FOR THE GENERAL ASSEMBLY TO APPROPRIATE MONIES TO OR FOR THE USE OF THE ARKANSAS GAMING COMMISSION; REQUIRING EACH CASINO TO PAY TO THE ARKANSAS STATE TREASURY A NET CASINO GAMING RECEIPTS TAX EQUAL TO TWENTY PERCENT (20%) OF ITS ANNUAL NET CASINO GAMING RECEIPTS; AND PROVIDING THAT THE NET CASINO GAMING RECEIPTS TAX REVENUE SHALL BE DISTRIBUTED SEVENTY PERCENT (70%) TO THE STATE HIGHWAY AND TRANSPORTATION DEPARTMENT FUND AS IDENTIFIED IN ARK. CODE ANN. SECTION 19 6 405 OR ITS SUCCESSOR FUND, FIFTEEN PERCENT (15%) TO BE EQUALLY DIVIDED AMONG ALL OTHER COUNTIES IN ARKANSAS IN WHICH A CASINO IS NOT OPERATING DURING THE MONTH FOR WHICH THE NET CASINO GAMING RECEIPTS TAX IS PAID, EIGHT PERCENT (8%) TO THE GENERAL REVENUE FUND, THREE PERCENT (3%) TO THE ARKANSAS ECONOMIC DEVELOPMENT COMMISSION INDUSTRY TRAINING PROGRAM OR ITS SUCCESSOR PROGRAM, ONE PERCENT (1 %) TO THE ARKANSAS DEPARTMENT OF HUMAN SERVICES FOR GAMBLING DISORDER PREVENTION SERVICES, ONE PERCENT (1%) TO THE COUNTY IN WHICH THE CASINO IS LOCATED, AND TWO PERCENT (2%) TO THE CITY OR TOWN IN WHICH THE CASINO IS LOCATED AND, lN THE EVENT THE CASINO IS NOT LOCATED WITHIN A CITY OR TOWN, THEN THE TWO PERCENT (2%) ALLOCATED TO THE CITY OR TOWN SHALL GO TO THE

COUNTY IN WHICH THE CASINO IS LOCATED, OR TO THE COUNTY IF IN AN UNINCORPORATED AREA; DEFINING ANNUAL NET CASINO GAMING RECEIPTS AS GROSS RECEIPTS FOR A 12-MONTH PERIOD FROM CASINO GAMING LESS AMOUNTS PAID OUT OR RESERVED AS WINNINGS TO CASINO PATRONS FOR THAT 12-MONTH PERIOD; SUBJECTING EACH CASINO TO THE SAME INCOME, PROPERTY, SALES, USE, EMPLOYMENTTAXES, FEES AND OTHER TAXATIONASSESSMENTS AS ANY FOR-PROFIT BUSINESS LOCATED IN THE COUNTY AND CITY OR TOWN IN WHICH THE CASINO IS LOCATED, EXCEPTPROVIDED THAT THE ARKANSAS GROSS RECEIPTS ACT OF 1941, AND ANY AMENDMENTS OR REPLACEMENTS THERETO, AND LOCAL GROSS RECEIPTS TAXES SHALL NOT APPLY TO CASINO GAMING RECEIPTS, AND THAT NO ADDITIONAL STATE OR LOCAL TAXES, FEES, OR ASSESSMENTS SHALL BE IMPOSED ON THE CASINOS EXCEPT AS AUTHORIZED IN THIS AMENDMENT; ALLOWING A CASINO TO OPERATE ANY DAY FOR ANY PORTION OR ALL OF ANY DAY; ACKNOWLEDGING THAT CURRENT ARKANSAS LAW PROHIBITS SELLING OR COMPLIMENTARY SERVING OF ALCOHOLIC BEVERAGES ON CHRISTMAS DAY, BUT ALLOWING THE SELLING OR COMPLIMENTARY SERVING OF ALCOHOLIC BEVERAGES IN CASINOS DURING ALL HOURS THE CASINO OPERA TES BUT OTHERWISE SUBJECT TO ALL APPLICABLE ARKANSAS LAWS INVOLVING THE DISTRIBUTION AND SALE OF ALCOHOL; PERMITTING THE SHIPMENT INTO ANY COUNTY OF ARKANSAS IN WHICH CASINO GAMING IS AUTHORIZED OF GAMBLING DEVICES SHIPPED AND DELIVERED IN ACCORDANCE WITH APPLICABLE FEDERAL LAW (15 USC §§ 1171 1178 AND AMENDMENTS AND REPLACEMENTS THERETO);; PROVIDING THAT THE GENERAL ASSEMBLY SHALL NOT AMEND ANY PROVISION OF THIS AMENDMENT EXCEPT THAT THE GENERAL ASSEMBLY BY A TWO THIRDS VOTE MAY AMEND THE SECTION CREATING THE ARKANSAS GAMING COMMISSION AND SETTING FORTH ITS POWERS AND THE SECTION SETTING FORTH THE TAXATION OF CASINOS AND THE DISTRIBUTION OF SUCH TAXES; PROVIDING THAT THE COUNTY IN WHICH A CASINO IS TO BE LOCATED MAY PROHIBIT SUCH CASINO BY AN ELECTION IN SUCH COUNTY CALLED BY A PETITION SIGNED BY THIRTY EIGHT PERCENT (38%) OF THE REGISTERED VOTERS OF THE COUNTY AND PROVIDING THAT THE COLLECTION OF SIGNATURES FOR SUCH PETITION SHALL NOT BEGIN BEFORE NOVEMBER 7, 2018 AND SUCH PETITION SHALL BE FILED WITH THE COUNTY CLERK OF SAID COUNTY BY JANUARY 7, 2019, AND IF THE PETITION IS SUFFICIENT SAID ELECTION TO BE HELD WITHIN THIRTY (30) DAYS OF FINAL LEGAL ACTIONS REGARDING THE SUFFICIENCY OF THE PETITION; RENDERING THE PROVISIONS OF THIS AMENDMENT SEVERABLE; DECLARING INAPPLICABLE ALL CONSTITUTIONAL PROVISIONS AND LAWS TO THE EXTENT THEY CONFLICT WITH THIS

AMENDMENT, BUT NOT OTHERWISE REPEALING, SUPERSEDING,
AMENDING, OR OTHERWISE AFFECTING AMENDMENT 84 (BINGO OR
RAFFLES) OR AMENDMENT 87 (STATE LOTTERY) TO THE ARKANSAS CONSTITUTION, OR ARKANSAS ACT 1151 OF 2005 (ELECTRONIC GAMES OF SKILL).

FULL TEXT

An Amendment to the Constitution of the State of Arkansas enacted by the people of the State of Arkansas:

§ 1. Short Title.

This Amendment shall be known and cited as "The Arkansas Casino Amendment of 2018."

§ 2. Authorizing Casinos and Casino Gaming.

(a) Casinos and casino gaming are hereby authorized in the State of Arkansas as provided in this Amendment.

(b) The Arkansas General Assembly shall from time to time enact laws to license and regulate casinos and casino gaming, and appropriate monies to or for the use of the Arkansas Gaming Commission created under section 3 of this Amendment, to fulfill the purposes of this Amendment. Initial laws and appropriations enacted by the General Assembly pursuant hereto shall be in full force and effect no later than June 30, 2019.

(c) A casino means a facility where casino gaming is conducted as authorized by this Amendment.

(d) Casino gaming means to deal, operate, carry on, conduct, maintain, or expose for play any game played with cards, dice, equipment, or any mechanical, electromechanical, or electronic device or machine for money, property, checks, credit, or any representative value.

§ 3. Commission Created - Members - Powers.

(a) There is hereby created the Arkansas Gaming Commission. The regulation of the casinos authorized by this Amendment, and the administration of the laws pertaining thereto, are hereby vested in the Arkansas Gaming Commission. The Arkansas Gaming Commission shall from time to time adopt regulations to license and regulate casinos and casino gaming in Arkansas-ffi accord with lav1s enacted by, including the General Assemblyestablishment of a one-time casino license application fee not exceeding one hundred thousand dollars ($100,000) and the manner in which the Arkansas Gaming Commission considers applications for issuance of casino licenses. Initial regulations adopted by the Arkansas Gaming Commission shall be in full force and effect no later than December 31, 2019. No later than March 1, 2020, the Arkansas Gaming Commission shall begin accepting applications for licenses to operate a casino.

(b) The Arkansas Gaming Commission shall be comprised of five Commissioners, all of whom shall be appointed by the Governor. The first Commissioners of the Arkansas Gaming Commission shall be appointed no later than March 31, 2019, by the Governor for terms of one, two, three, four, and five years, respectively. The terms of the persons so appointed shall be determined by lot. Upon the expiration of the foregoing terms of said Commissioners,

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successors shall be appointed by the Governor for terms of five years. Commissioners may succeed themselves. Any vacancy arising in the membership on the Arkansas Gaming Commission for any reason other than the expiration of the regular term for which the Commissioner was appointed shall be filled by appointment by the Governor, to be thereafter effective until the expiration of such regular term.

(c) The Governor shall have the power to remove any Commissioner for cause only, after notice and hearing before the Arkansas Gaming Commission. Such removal shall become effective only when approved in writing by a majority of the total number of Commissioners, but without the right to vote by the Commissioner removed or by the successor Commissioner, which action shall be filed with the Secretary of State together with a complete record of the proceedings at the hearing. An appeal may be taken to the Pulaski County Circuit Court by the Governor or the Commissioner ordered removed, and the same shall be tried de novo on the record. An appeal may be taken from the Circuit Court to the Arkansas Supreme Court, which shall likewise be tried de novo on the record.

§ 4. Authorized Locations.

(a) CasinosThe four (4) casinos allowed under this Amendment shall be located one each at the specifically designated locationlocations in each of the following four (4) Arkansas counties, with no more than one casino at each location, and all licenses hereunder being subject to the lav1s enacted by the General Assembly in accord with this Amendment and regulations promulgated by the Arkansas Gaming Commission in accord vlith laws enacted by the General Assembly:

(1) Benton County: An approximate 24 7 acre area in Benton County, Arkansas, as identified by the Benton County Assessor, as of March 7, 2018, as parcel numbers 18-10408-000, 18-10494-000, 18-1044 7-000 and 18-10518-000, having a street address of 16994 Kincheloe Road Siloam Springs, Arkansas and more specifically described as: A part of the SE 14 of the SE 14 of Section 6, and a part of the S Yz of Section 5, and a part of the W Yz of the SW 14 of Section 4, and a part of the NW 14 of the NW 14 of Section 9, and a part of the N Yz of Section 8, all in Township 17 North, Range 32 West, Benton County, Arkansas, being more particularly described as follows: BEGINNING at the NW comer of the NW 14 of the NW 14 of said Section 8; THENCE along the West line of said NW 14 of the NW 14 of said Section 8, S 01°23'16" W 754.87 feet to the North line of Highway 412; THENCE along said North line of Highway 412 the following courses and distances: S 68°31 '10" E 84.18 feet; THENCE S 74°04'02" E 499.95 feet; THENCE S 74°04'34" E 500.06 feet; THENCE S 74°04'02" E 398.68 feet; THENCE S 75°50'00" E 243.49 feet; THENCE S 78°22'40" E, 243.46 feet; THENCE S 81°36'21" E, 389.59 feet;
THENCE S 87°53'48" E 395.41 feet; THENCE S 85°24'30" E 499.90 feet; THENCE N 88°53'36" E 201.03 feet; THENCE S 84°15'55" E 500.10 feet; THENCE N 63°09'34" E 59.66 feet; THENCE leaving said North line of Highway 412, N 01°22'07" E 766.46 feet along the West line of the NE 14 of the NE 14 of said Section 8; THENCE leaving said West line of the NE 14 of the NE 14 of said Section 8, S 88°52'58" E 1314.98 feet to the East line of the NE 14 of the NE 14 of said Section 8; THENCE S 88°58'09" E 669.45 feet;
THENCE N 01°08'57" E 2525.52 feet to the centerline of the Illinois River; THENCE

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along said centerline of the Illinois River the following courses and distances: S 40°09'49 11 W 451.10 feet; THENCE S 43°54'45 11 W 390.41 feet; THENCE S 51°04'53 11 W 497.83 feet; THENCE S 58°29'48 11 W 257.48 feet; THENCE S 84°01'0l11 W 269.22 feet;
THENCE S 87°00'05 11 W 642.90 feet; THENCE N 85°14'40 11 W 183.84 feet; THENCE N 37°42'41 11 W 528.71 feet; THENCE N 36°30'27 11 W 305.33 feet; THENCE N 66°29'56 11 W 101.88 feet; THENCE S 84°45'05 11 W 156.25 feet; THENCE S 80°04'26 11 W 200.12 feet; THENCE S 66°14'33 11 W 160.64 feet; THENCE S 61°15'40 11 W 95.26 feet;
THENCE S 88°33'45 11 W 183.19 feet; THENCE S 66°37'18 11 W 442.36 feet; THENCE S 64°34'55 11 W 249.26 feet; THENCE S 71°09'45 11 W 276.81 feet; THENCE S 74°44'23 11 W 279.80 feet; THENCE S 82°59'32 11 W 254.13 feet; THENCE S 69°27'36 11 W 115.08 feet;
THENCE S 63°49'41 11 W 181.60 feet; THENCE N 89°15'43 11 W 101.58 feet; THENCE N 70°26'19 11 W 428.28 feet; THENCE S 43°35'06 11 W 253.48 feet; THENCE S 40°04'44 11 W 599.51 feet; THENCE S 37°25'32 11 W 151.05 feet; THENCE S 49°33'06 11 W 60.84 feet to the South line of the SE \/,i of the SE \/,i of said Section 6; THENCE along said South line of the SE \/,i of the SE \/,i of said Section 6, S 88°47'42 11 E 553.28 feet to the POINT OF BEGINNING, containing 280.58 acres, more or less, subject to rights-of-way, protective covenants, and/or easements, if any. LESS & EXCEPT: a part of the SW \/,i of Section 5 and a part of the SE \/,i of Section 6 and a part of the NW \/,i of Section 8, all in Township 17 North, Range 32 West, Benton County, Arkansas, being more particularly described as follows: BEGINNING at the NW comer of the NW \/,i of the NW \/,i of said Section 8;
THENCE along the West line of said NW \/,i of the NW \/,i of said Section 8 S 01°23' 16" W 754.87 feet to the North line of Highway 412; THENCE along said North line of Highway 412 the following courses and distances: S 68°31'1 O" E 84.18 feet; S 74°04'02" E 499.95 feet; S 74°04'34" E 81.21 feet; THENCE leaving said North line of Highway 412N67°06'18" E 714.91 feet; THENCE N 47°46'03" W 299.93 feet; THENCE N 48°29'33" W 225.73 feet; THENCE N 48°27'44" W 307.63 feet; THENCE N 22°00'18" W 60.02 feet; THENCE N 03°01' 16" E 374.49 feet; THENCE N 02°15' 10" E 285.65 feet; THENCE N 04°02'12" E 66.67 feet to the centerline of the Illinois River; THENCE along said centerline of the Illinois River the following courses and distancedistances: N 89°15'43" W 101.58 feet; N 70°26'19" W 428.28 feet; S 43°35'06" W 253.48 feet; S 40°04'44" W 599.51feet;S37°25'32" W 151.05 feet; S 49°33'06" W 60.84 feet to the South line of the SE \/,i of the SE \/,i of said Section 6; THENCE along said South line of the SE \/,i of the SE \/,i of said Section 6 S 88°47'42" E to the POINT OF THE BEGINNING, containing 33.66 acres, more or less. subject to the rights-of-way and easements, if any.

The initial licensed casino operator, licensed by the Arkansas Gaming Commission, of the casino in Benton County shall make an initial investment of at least one hundred million dollars ($100,000,000) in land, capital improvements and equipment for the development of the Benton County casino.

(2) Boone County: An approximate 62 acre area in Boone County, Arkansas, as identified by the Boone County Assessor, as of March 26, 2018, as parcel numbers 021-07943-002, 021-07943-000C, 021-07955-002C, 021-07939-000 and 021-07939-001, and having street addresses of 13 721, 13 721 A and 13 781 Bird Lane, Omaha, Arkansas, more specifically described as: A part of the NE \/,i of the SE \/,i of Section 8, and a part of the

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NW '/,i of the SW '/,i of Section 9, all in Township 21 North, Range 21 West, Boone County, Arkansas, more particularly described as follows: COMMENCING at the SE comer of the NE '/,i of the SE '/,i of said Section 8; THENCE N 87°52'32 11 W 423.29 feet to the center line of existing road easement for the POINT OF BEGINNING; THENCE leaving said center line of existing road easement N 87°52'32 11 W 51.64 feet to the center line of a 30 foot road easement; THENCE leaving said center line of 30 foot road easement N 87°52'32 11 W 838.80 feet; THENCE N 00°30'12 11 E 198.00 feet; THENCE N 68°00'19 11 E 1148.16 feet to the Westerly R/W of the New U.S. Highway 65; THENCE with said Westerly R/W S 64°29'10 11 E 172.09 feet; THENCE S 44°30'10 11 E 331.15 feet; THENCE S 14°29'20 11 W 108.67 feet to the centerline of existing road easement; THENCE leaving said Westerly R/W of New U.S. Highway 65 and following said center line of existing road easement S 79°07'03 11 W 75.77 feet; THENCE S 81°37'45 11 W 170.65 feet; THENCE S 60°22'33 11 W 117.24 feet; THENCE S 53°32'09 11 W 131.08 feet; THENCE S 50°42'47 11 W 111.33 feet to the POINT OF BEGINNING and containing 13.10 acres, more or less, and subject to existing easements and road right-of-ways. Also subject to a 30 foot road easement located in the NE '/,i of the SE '/,i of said Section 8, more particularly described as follows: COMMENCING at the SE comer of the NE '/,i of the SE '/,i of said Section 8; THENCE N 87°52'32 11 W 474.93 feet to the centerline of said 30 foot road easement for the POINT OF BEGINNING; THENCE with said center line of 30 foot road easement N 32°23'42 11 E 25.00 feet; THENCE N 69°06'38 11 E 133.13 feet to the center line of existing road easement for its terminus AND a part of the SE 114 of the SE 114 of Section 8, Township 21 North, Range 21 West, Boone County, Arkansas, more particularly described as follows: COMMENCING at a found stone at the NE comer of the SE 114 of the SE 114 of said Section 8; THENCE with North line of said forty N 87°52'32" W 492.17 feet to the West side of a 30 foot roadway easement for the POINT OF BEGINNING; THENCE leaving said North line of forty and following West side of said 30 foot roadway easement S 32°23'43 11 W 89.39 feet; THENCE leaving said West side of30 foot roadway easement N 64°33'18 11 W 195.02 feet to the North line of said forty; THENCE with North line of said forty S 87°52'32 11 E 224.14 feet to the POINT OF BEGINNING and containing 0.20 acres and subject to existing easements and right of ways AND All that part of the SE '/,i of the NE 114 of Section 8, Township 21 North, Range 21 West, lying West of the U.S. Highway No. 65. Also, the NE 114 of the SE 114 of Section 8; and all that part of the NW '/,i of the SW 114 of Section 9, Township 21 North, Range 21 West lying West ofU. S. Highway No. 65, EXCEPT THE FOLLOWING: BEGINNING at the NE Comer of the SE 114 of the NE 114 of said Section 8; THENCE N 86°03' W along the North line thereof 648.1 feet to a point on the existing southwesterly right-of-way line of Highway No. 65 for the POINT OF REAL BEGINNING; THENCE in a southeasterly direction along said existing right-of-way line on a curve right having a radius of 596.62 feet a distance of 222.4 feet to a point on the proposed southwesterly right-of-way line of said highway; THENCE N 75°36' W along said proposed right-of- way line 424.1 feet to a point on the North line of the SE 114 of the NE 114 of said Section 8; THENCE S 86°03' E along said North line 209.7 feet to the POINT OF REAL BEGINNING. ALSO EXCEPT THE FOLLOWING: BEGINNING at the NE comer of the SE 114 of the NE 114 of said Section 8; THENCE N 86°03' W along the North line thereof 648.1 feet to a point on the existing southwesterly right-of-way line of Highway No. 65; THENCE in a southeasterly direction along said existing right-of-way line on a

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curve right having a radius of 596.62 feet a distance of 313.5 feet to a point on the proposed southwesterly right-of-way line of said Highway for the POINT OF REAL BEGINNING; THENCE continue in a southeasterly direction along said existing right- of-way line on a curve right having a radius of 596.62 feet a distance of 344.0 feet to a point; THEN CE S 13°13 '41" E along said existing right-of-way line 609 .5 feet to a point on the proposed southwesterly right-of-way line of said Highway; THENCE N 39°43' W along said proposed right-of-way line 408.6 feet to a point; THENCE N 04°39' W along said proposed right-of-way line 575.5 feet to the POINT OF REAL BEGINNING. ALSO EXCEPT THE FOLLOWING: A part of the SE Yi of the Fractional NE Yi of Section 8, Township 21 North, Range 21 West, Boone County, Arkansas, more particularly described as follows: BEGINNING at a found flat iron stake at the NW corner of the SE Yi of the Fractional NE Yi of said Section 8; THENCE N 89°41'24"E400.00 feet to a set iron pin; THENCE S 00°33' 19" E 100.00 feet to a set iron pin; THENCE S 89°41 '24" W 400.00 feet to a set iron pin; THENCE N 00°33' 19" W 100.00 feet to the POINT OF BEGINNING. Subject to existing easements and right of ways. ALSO EXCEPT THE FOLLOWING: BEGINNING at the SW comer of the NW Yi of the SW Yi of said Section 9; THENCE East 1115 feet to the West right-of-way line of U.S. Highway No. 65; THENCE N 36 Y2° W along said right-of-way line 300 feet; THENCE N 42°20' W along said line 938 feet; THENCE in a Southwesterly direction to a point 198 feet North of the SW comer of the NE Yi of the SE Yi of said Section 8; THENCE South 198 feet to the SW comer thereof; THENCE East along the South line of the said NE Yi of the SE Yi to the SW comer of the NW Yi of the SW Yi of said Section 9, the POINT OF BEGINNING. ALSO EXCEPT THE FOLLOWING: Part of the SE Yi of the NE Yi and part of the NE Yi of the SE Yi of said Section 8, also part of the NW Yi of the SW Yi and part of the SW Yi of the NW Yi of said Section 9, all in Township 21 North, Range 21 West, Boone County, Arkansas, described as follows: STARTING at the NW corner of the said SE Yi of the NE Yi of Section 8; THENCE S 88°22'34" E along the North line thereof for a distance of 664.88 feet; THENCE S 64°12'55" E for a distance of 269.90 feet to a point on the existing controlled access right of way of U.S. Highway 65 and to the POINT OF BEGINNING; THENCE S 02°14'49" E along the proposed right of way of Highway 65 for a distance of 318.02 feet; THENCE S 22°58'09" W along the proposed right of way of U. S. Highway 65 for a distance of 366.46 feet; THENCE S 49°40'02" E along the proposed right of way of U.S. Highway 65 for a distance of276.99 feet; THENCE S 12°46'43" E along the proposed right of way of U.S. Highway 65 for a distance of 314.03 feet; THENCE S 50°28'31" W along the proposed right of way of U.S. Highway 65 for a distance of278.57 feet; THENCE S 69°49'38" E along the proposed right of way of U. S. Highway 65 for a distance of 320.16 feet; THENCE S 18°29' 14" E along the proposed right of way of U.S. Highway 65 for a distance of250.00 feet; THENCE S 53°04'41" W along the proposed right of way ofU. S. Highway 65 for a distance of 316.23 feet; THENCE S 63°29' 14" E along the proposed right of way of U. S. Highway 65 for a distance of 33.87 feet; THENCE N 69°20'29" E along the South property line for a distance of 620.92 feet to the existing Westerly right of way ofU. S. Highway 65; THENCE along a curve to the right having a radius of 1472.55 feet to an arch length of 685.32 feet, being substended by a chord of N 25°03 '29" W for a distance of 679.15 feet along said existing right of way; THENCE N 14°34'26" W along said existing right of way for a distance of 130.55 feet to the existing controlled access of U. S. Highway 65;

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THENCE N 40°37'21" W along said existing controlled right of way for a distance of 408.60 feet; THENCE N 05°33 '21" W along said existing controlled right of way for a distance of 575.50 feet; THENCE along a curve to the left having a radius of 596.62 feet and an arc length 41.30 feet being substended by a chord ofN 49°09'34" W along said controlled right of way for a distance of 41.29 feet to the POINT OF BEGINNING containing 9.38 acres, more or less.

The initial licensed casino operator, licensed by the Arkansas Gaming Commission, of the casino in Boone County shall make an initial investment of at least one hundred million dollars ($100,000,000) in land, capital improvements and equipment for the development of the Boone County casino.

(3) Miller County: An approximate 35 acre area in Miller County, Arkansas, as identified by the Miller County Assessor, as of March 26, 2018, as a portion of parcel number 0840020, and having a street address of 7815 U.S. Highway 67 East, Texarkana, Arkansas, more specifically described as: All that certain lot, tract, or parcel of land lying and situated in the N Yz of Section 30, Township 14 South, Range 27 West, Miller County, Arkansas, and being more particularly described by metes and bounds as follows: COMMENCING at a Yz" steel rod found for a corner, said line being on a line for the North boundary line of U.S. Highway 67, and also being on the South line of the SE Yt of the NW Yt of said Section 30, and also being the POINT OF BEGINNING;
THENCE N 87°17'37" W 1563.73 Feetfeet to a found Yz" steel rod for a corner, said rod also being the SW corner of the SW Yt of the NW Yt of said Section 30; THENCE N 02°12'58" E 1554.23 Feetfeet along the West line of the said SW Yt of the NW Yt, and extending along the West line of the NW Yt of the NW Yt of said Section 30 to a Yz" steel rod found for a corner lying on the South Right-of: Way line of Interstate 30; THENCE S 50°29' 50" E 2199. 79 Feetfeet to a point for a corner, said point being on the North Right- of-Way line of U.S. Highway 67, and also being in the SE Yt of the NW Yt of said Section 30; THENCE S 40°39'26" W 300 Feet along the North Right-of-Way line of U.S.
Highway 67 to the POINT OF BEGINNING and containing 35.47 Acres of land, more or less, and being subject to all easements by utilities, and or roads.

The initial licensed casino operator, licensed by the Arkansas Gaming Commission, of the casino in Miller County shall make an initial investment of at least sixty million dollars ($60,000.00) in land, capital improvements, and equipment for the development of the Miller County casino.

(4) Pulaski County: An approximate 200 acre area in Pulaski County, Arkansas, as identified by the Pulaski County Assessor, as of March 21, 2018, as parcel numbers 44R0290000500, 44R0290000600, 44R0200006300 and 44R0300000100, more specifically described as: The N Yz of the NW Yt and the SW Yt of the NW Yt of Section 29, the NE Yt of the NE Yt of Section 30, the SW Yt of the SW Yt and a part of the NW Yt of the SW Yt of Section 20, all being in Township 1 North, Range 13 West, Pulaski County, Arkansas, more particularly described as follows: BEGINNING at the common Section corner between Sections 19, 20, 29 and 30, Township 1 North, Range 13 West;
THENCE along the West line of said Section 20, N 01°47'48" Ea distance of 1732.82

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feet; THENCE S 87°53'58" Ea distance of210.20 feet; THENCE N 01°47'20" Ea distance of722.76 feet; THENCE N 67° 23'49" Ea distance of204.40 feet; THENCE N 04° 25'44" Ea distance of79.90 feet; THENCE S 87°51 '48" Ea distance of240.22 feet; THENCE S 03°05 '58" W a distance of 306. 71 feet; THENCE S 87°17' 13" E a distance of 200.00 feet; THENCE S 02°12'43" W a distance of 1012.64 feet; THENCE S 87°21' 16" Ea distance of 467.42 feet to a 112 inch rebar near the NE corner of the SW \l.i of the SW \l.i of said Section 20; THENCE S 00°52' 51" W a distance of 1296.51 feet to the W 1116 corner of said Sections 29 and 20; THENCE S 87°50' 11" Ea distance of 1313.91 feet to the NE corner of the NE \l.i of the NW \l.i of said Section 29; THENCE S 01° 41 '01" W a distance of 1311.26 feet to the SE corner of the NE \l.i of the NW \l.i of said Section 29; THENCE N 87° 44'45" W a distance of 1309.75 feet to the NW 1/16 corner of said Section 29; THENCE S 01°41 '02" W a distance of 1309.45 feet to the SE corner of the SW \l.i of the NW \l.i of said Section 29; THENCE N 87°35'15" W a distance of 1307 .88 feet to the W \l.i corner of said Section 29; THENCE N 01°27' 31" E a distance of 1306.53 feet to the common N 1116 corner between said Sections 29 and 30; THENCE N 88°22'04" W a distance of 1319.82 feet to the SW corner of the NE \l.i of the NE \l.i of said Section 30; THENCE N 01°04' 16" Ea distance of 1313.68 feet to the NW corner of the NE \l.i of the NE \l.i of Section 30; THENCE S 88°03'43" Ea distance of 1328.75 feet to the POINT OF BEGINNING. AND Being subject to a Permanent Easement recorded as Instrument No. 2006036599, records of Pulaski County, Arkansas, being a part of the SW \l.i of Section 20, Township 1 North, Range 13 West, more fully described as follows: COMMENCING at the NW corner of said SW \l.i and run S 01°47'48" W along the West line thereof for a distance of 315.04 feet to the South right of way line of Lawson Road; THENCE N 62°35'35" E along the South right of way line of said Lawson Road for a distance of 84.80 feet; THENCE N 61°45' 1O" E along said South right of way for a distance of 152.80 feet; THENCE with a curve turning to the right with an arc length of 3.74 feet, a radius of 475.00 feet, a chord bearing of N 61°58'42" E, a chord length of 3.74 feet to the POINT OF BEGINNING; THENCE with a curve turning to the right with an arc length of 19.54 feet, a radius of 475.00 feet, a chord bearing of N 63°22'56" E, with a chord length of 19 .54 feet to a point on the South right of way line of Lawson Road; THENCE leaving said right of way, S 20°08'23" W a distance of21.28 feet; THENCE S 28°08'16" W a distance of21.52 feet; THENCE S 41°11 '40" W a distance of 1.4 7 feet; THENCE N 01°47'20" Ea distance of 31.32 feet to the POINT OF BEGINNING. LESS AND EXCEPT: A part of the SW \l.i of Section 20, Township 1 North, Range 13 West, Pulaski County, Arkansas and being more fully described as: COMMENCING at a Found 1" pipe marking the SW Corner of the SW \l.i of said Section 20, and run THENCE S 87°49'38" E along the South line thereof for a distance of 1313.91 feet; THENCE N 00°53'25" E for a distance of 408.92 feet to the POINT OF BEGINNING of the land herein described; THENCE continuing N 00°53'25" E for a distance of 887.58 feet; THENCE N 87°20'43" W for a distance of 801.44 feet; THENCE S 45°39'47" W for a distance of 105.67 feet to the point of curvature of a curve to the left that has a delta angle of 59°39'56", a radius of 230.00 feet, and a chord bearing and distance of S 15°49' 49" W for 228.84 feet; THENCE along the arc of said curve to the left a distance of 239.51 feet to the point of tangency of said curve to the left; THEN CE S 14°00' 09" E for a distance of 433. 78 feet to the point of curvature of a curve to the right that has a delta angle of 21°18' 59'', a radius of 320.00 feet, and a chord

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bearing and distance of S 03°20'39" E 118.37 feet; THENCE along the arc of said curve to the right a distance of 119.05 feet to the point of tangency of said curve to the right;
THENCE S 07°18'51" W for a distance of79.38 feet; THENCE S 89°06'35" E for a distance of 823.14 feet to the POINT OF BEGINNING.

The initial licensed casino operator, licensed by the Arkansas Gaming Commission, of the casino in Pulaski County shall make an initial investment of at least one hundred million dollars ($100,000,000) in land, capital improvements and equipment for the development of the Pulaski County casino.

fh(b) Ownership of any property identified in subsection (a) of this section in and of itself does not convey the right to operate a casino on such property. Any person or entity desiring to operate a casino on any property identified in subsection (a) of this section shall make an application to the Arkansas Gaming Commission for a license to do so pursuant to regulations promulgated by the Arkansas Gaming Commission in accord with laws enacted by the General Assembly .

.{£) Each of the casinos shall be subject to all applicable state laws and local ordinances related to health and building codes, or any related requirements and provisions. Notwithstanding the foregoing, no local zoning, land use laws, subdivision regulations or similar provisions shall prohibit the development or operation of the casinos authorized herein, provided that no casino shall be located in an area zoned exclusively residential as of January 1, 2018. Nothing in this Amendment shall restrict the alienability of the properties, or any portions thereof, identified in subsection (a) of this section.

(d) An individual or entity may own an interest in more than one ( 1) casino.

§ 5. Taxation.

(a) Each casino shall pay an annual net casino gaming receipts tax equal to twenty percent (20%) of its annual net casino gaming receipts to the Arkansas State Treasury.

(b) The revenue generated by the net casino gaming receipts tax shall be distributed seventy percent (70%) to the State Highway and Transportation Department Fund as identified in Ark. Code Ann. Section 19-6-405 or its successor fund, fifteen percent (15%) to be equally divided among all other counties in Arkansas in which a casino is not operating during the month for which the net casino gaming receipts tax is paid, eight percent (8%) to the general revenue fund, three percent (3%) to the Arkansas Economic Development Commission Industry Training Program or its successor program, one percent (1%) to the Arkansas Department of Human Services for gambling disorder prevention services, one percent (I%) to the county in which the casino is located, and two percent (2%) to the city or town in which the casino is located and, in the event the casino is not located within a city or town, then the two percent (2%) allocated to the city or town shall go to the county in which the casino is located.

(c) Annual net casino gaming receipts are defined as gross receipts for a 12-month period from casino gaming, less amounts paid out or reserved as winnings to casino gaming patrons for that

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12-month period. Amounts paid out or reserved as winnings to casino gaming patrons and the annual net casino gaming receipts taxes paid or reserved are deductible for purposes of calculating the casino's net income under the Income Tax Act of 1929 (Ark. Code Ann. Sections 26-51-101 et seq.) and any amendments or replacements thereto.

(d) The tax imposed by Arkansas Gross Receipts Act of 1941 (Ark. Code Ann. Sections 26-52- 101 et seq.), any amendments or replacements thereto, and any related local gross receipts taxes, shall not apply to casino gaming receipts, and no additional tax on casino gaming gross receipts shall be imposed by the State or by counties, municipalities or other units of local government. Except for the exclusion in the previous sentence, each casino shall be subject to the same income, property, sales, use, employment or other taxationtaxes, fees or assessments as any for- profit business located in the county and city or town in which the casino is located~, and no additional State or local taxes, fees, or assessments shall be imposed on the casinos except as authorized in this Amendment.

§ 6. Other Operational Provisions.

(a) Casinos may operate any or all days of the year and for any or all portions of a 24-hour day.

(b) Notwithstanding that current Arkansas law prohibits selling or complimentary serving of alcoholic beverages on Christmas Day, Casinos shall be permitted to sell alcoholic beverages or provide complimentary servings of alcoholic beverages during all hours in which the casino is operating. Casinos shall be subject to all applicable Arkansas laws involving the distribution and sale of alcohol that do not conflict with the previous sentence.

§ 7. Legal Shipment of Gambling Devices into State.

All shipments of gambling devices, including slot machines, into any county of this State within which casino gaming is authorized, the registering, recording, and labeling of which has been duly performed by the manufacturer and/or dealer thereof in accordance with 15 U.S.C. §§ 1171- 1178 and amendments and replacements thereto, shall be deemed legal shipments thereof into any such county of this State within which casino gaming is authorized.

§ 8. Amendment by General Assembly.

(e) fornept as provided in subsection (b) of thfr; section, theThe General Assembly shall not amend any provision of this Amendment.

(b) The General Assembly, in the same manner as required for amendment of laws initiated by the people, may amend Section 3 and Section 5 of this Amendment, so long as the amendments are germane to Section 3 and Section 5 and consistent with the policy and purposes of Section 3 and Section 5. :

§ 9. County Option.

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(a) A county in which a casino is to be located under Section 4(a) of this Amendment may prohibit the initial authorization under Section 4(a) of this Amendment if such a prohibition is approved at an election pursuant to this section.

(b)(l) (A) An election under this section must be called by a petition signed by registered voters in the designated county in a number equal to thirty eight percent (38%) of the registered voters.

(B) The collection of the signatures for the petition shall not begin before November 7, 2018.

(2) The petition shall be filed with the county clerk of the county in which the petition is circulated by January 7, 2019.

(3) The county clerk shall verify the signatures on the petition and determine the sufficiency of the petition no later than ten (10) days after the petition is submitted.

(4) The total number of voters registered as certified by the county clerk to the Secretary of State by June 1, 2018, pursuant to Amendment 51 of this Constitution, shall be the basis upon which the number of signatures of qualified electors on petitions shall be computed.

(5) If no appeal is taken from the certification of the county clerk, the decision shall be certified immediately to the county board of election commissioners, and the day for the election shall be fixed by the county board of election commissioners for not later than thirty (30) days after certification by the county clerk.

(c)(l) If an appeal is taken from the certification of the county clerk, it shall be taken within ten ( 10) days and shall be considered by the circuit court within five (5) days after the appeal is lodged with the court and shall have precedence over all other suits and matters before the court.

(2) The circuit court shall render its decision within ten (10) days thereafter.

(d)(l)(A) The circuit court's decision shall be certified immediately to the county board of election commissioners, and the day for the election shall be fixed by the county board of election commissioners for not later than thirty (30) days after the certification of the decision of the circuit court.

(B) Any appeal from the final decision of the circuit court shall be taken within ten (10) days and shall be advanced and immediately determined by the Arkansas Supreme Court.

(2) If the Arkansas Supreme Court's decision is in favor of the petitioners, then the county board of election commissioners shall set the day for the election, which shall be not later than thirty (30) days after the final decision of the Arkansas Supreme Court on the matter.

(e) Except as provided in this Section 9, a petition for a county option election pursuant to this section shall be governed by Article 5, § 1, of this constitution and statutes thereunder.

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§ 10. Severability.

If any provision of this Amendment or the application of any such provision to any person or circumstance is held invalid, the validity of any other provision of this Amendment, or the application of such provision to other persons and circumstances, shall not be affected thereby, and to this end the provisions of this Amendment are declared to be severable.

§ 11: Inconsistent Provisions Inapplicable.

All provisions of the Constitution of this State and statutes of this State, including, but not limited to, laws forbidding the judicial enforcement of gambling debts and statutes declaring gambling to be crimes, to the extent inconsistent or in conflict with any provision of this Amendment are expressly declared null and void as to, and do not apply to, any activities allowed under this Amendment. However, this Amendment does not repeal, supersede, amend, or otherwise affect Amendment 84 (bingo or raffles) or Amendment 87 (state lottery) to the Arkansas Constitution, or Act 1151 of 2005 (electronic games of skill) (Ark. Code Ann. Sections 23-113-101 et seq.).

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