Senators Cast Doubt on Legislation for Southland Gaming to Rebuild STT Racetrack
Senators were dubious Tuesday when the Committee of the Whole met to discuss the proposed settlement agreement with Southland Gaming of the Virgin Islands, Inc. and VIGL Operations LLC, regarding the construction of the Clinton E. Phipps Racetrack facility on St. Thomas.
2022-03-25 12:20:52 - VI News Staff
The dispute arose in 2016 after the Legislature approved a deal shepherded by then Gov. Kenneth Mapp to allow slot machine operator VIGL up to 200 slot machines at St. Thomas’s Clinton Phipps horse track and run the slot parlor at St. Croix’s Randall “Doc” James horse track in exchange for rebuilding the tracks and running the races. Southland Gaming runs video lottery slot machines all over St. Thomas and objected at the time that it violated its government-granted monopoly. (See: Horse Racing Slots Plan May Be Risky )
In 2018, Southland Gaming sued the V.I. government saying the 2016 deal violated the government’s 2003 Video Lottery Agreement that only Southland Gaming could operate video lottery gaming in the St. Thomas-St. John District.
Sen. Kurt Vialet said there was a 2008 agreement that terminated the exclusivity of the agreement for Southland agreement.
Under the 2016 deal, VIGL had three and a half years to have both tracks “substantially completed.” But that clock did not start until all permits were in place.
VIGL, which owns the slot machine parlor at the Caravelle Hotel on St. Croix, pinned the blame for continued delays on the Southland lawsuit.
“We would have racing right now if it weren’t for this case,” said VIGL chief financial officer and managing partner, Andrew Dubuque.
According to Attorney General Denise George, Southland claimed that the “VIGL Franchise Agreement pertaining to the operation of slot machines at a ‘racino’ in the St. Thomas District, is an unconstitutional impairment of Southland’s VLT agreement with the Virgin Islands Lottery.”
However, out-of-court settlements brought about Bill No. 34-0224, which George says would “settle and dismiss” the lawsuit.
The proposed legislation, sent by Gov. Albert Bryan Jr., allows Southland Gaming to subcontract and develop the horse track on St. Thomas. Southland would commit up to $100,000 per race, but no more than $600,000 per year, to fund the race purses. Further, the organization will be able to install video lottery terminals. The government of the Virgin Islands will allow VIGL to be the promoter of the races at the track, but not operate any of the gaming machines.
According to Raymond Williams, executive director of the V.I. Lottery Commission, revenues from V.I. lottery terminals provide revenue for organizations such as the Government Employees’ Retirement System, Department of Education, and Department of Human Services.