THE ASSOCIATED PRESS
LITTLE ROCK, Ark. -- A judge ruled that the Arkansas Securities Department can continue a court fight against a casino group's attempt to sell stock in the gambling corporation.
The department and Natural State Resorts Inc. have been going back and forth in court since 1997. Pulaski County Chancellor Vann Smith ruled Wednesday that a countersuit by the department can proceed against the casino group.
Natural States is the parent corporation of Arkansas Casino Corp., which is behind proposed constitutional amendment to legalize casinos. The sale of stock would finance the corporation's effort to promote proposed Amendment 5 on the Nov. 7 ballot.
The company sued the Securities Department in July, accusing state regulators of harassment and trying to delay the company's stock sale until after the election. The department filed a countersuit, claiming the company illegally sold securities, misled investors and failed to comply with previous state orders.
At Wednesday's hearing, company attorney Joe Perry argued that the department did not properly file its suit and asked Smith to dismiss the action. Smith acknowledged problems with the filing and ordered state regulators to amend the suit and refile within 20 days.
Smith also turned away a company request for mediation.
"I'm encouraging you two to settle this case, but I'm not ordering mediation," Smith said. "I don't believe I have the authority to do it."
The proposed amendment would allow the company to build casinos in six Arkansas counties. It would also authorize a state lottery and legalize charitable bingo.
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