Casinos for Highways?
Casinos for Highways?
Group seeks certification of measure to authorize casinos, help fund highways; proposal calls for merit- based selection of up to three casinos in state with 65 percent of proceeds dedicated to roads
Arkansas News Service LITTLE ROCK — The citizens’ group Driving Arkansas Forward today launched an effort to generate additional funding for Arkansas highways through a constitutional amendment to legalize a maximum of three casinos in the state.
The group asked the Attorney General’s Office to certify the popular name and ballot title of The Arkansas Casino Gaming and Highway Funding Amendment of 2018. The amendment allocates 65 percent of all casino tax revenues to the State Highway and Transportation Department Fund to pay for needed improvements to the state’s roads and bridges.
The Arkansas Lottery Division of the state Department of Finance and Administration would issue casino licenses through a merit-based selection method, with approval from municipal or county leaders in the communities where the casinos may be located.
The amendment authorizes no more than three casinos statewide, with no more than one in any county.
The casinos would be placed only in counties that meet specific population and economic criteria.
“Our highway system must be a priority if Arkansas wants to remain competitive nationally and provide the best economic opportunities to our residents,” said Nate Steel, counsel for Driving Arkansas Forward. “This amendment focuses on highway funding while creating a fair, transparent and merit-based process for issuing gaming licenses. We can no longer afford to lose potential gaming revenue to surrounding states when we have the opportunity to keep that money here and create jobs in communities that need them.”
Arkansas highway officials estimate the state’s expected highway revenue over the next decade will meet only about half of its needs. Though this funding alone will not address that significant gap, it will provide substantial long-term support for state highways. Potentially, casino revenues could bring in an additional $45 million per year for Arkansas roads.
“This proposed amendment could be the shot in the arm we need to help meet infrastructure needs statewide and to improve economic conditions in places like Jefferson and Crittenden counties,” Steel said. “This proposal addresses the deficiencies of previous casino proposals. It gives local leaders a voice in the process and makes sure there’s a level playing field for everyone involved.”
The amendment would first authorize the Arkansas Lottery Division to approve a license for a casino in Jefferson County. A subsequent license would be issued in Crittenden County and the final, third license could be granted for a casino located in either Miller, Mississippi, Pope, Union or White counties.
At least $100 million must be invested in each casino.
In addition to the 65 percent of tax revenues dedicated to highways, 22.5 percent of revenues would go to the city where the casino is located and 10 percent to the county where the casino is located. The Arkansas Lottery Division, which would regulate the casinos, would receive 2.5 percent of casino tax revenue.
Supporters of the measure met today with elected officials and community leaders in Jefferson County to the discuss the proposed amendment. Additional meetings in other parts of the state are expected as the ballot measure progresses.
Arkansas Code Section 79-107 requires the Attorney General to certify or reject the popular name and ballot title within 10 days. If the amendment is certified by the AG, Driving Arkansas Forward would begin collecting signatures for the measure to be placed on the Nov. 6 ballot.
From Aaron Sadler
