ST. CROIX — The Virgin Islands Casino Control Commission heard testimony Wednesday night in support of granting an initial license to VIGL Operations LLC to operate a casino at the Randall “Doc” James Racetrack as the family-owned company moves forward with plans to construct a state-of-the-art horse racing facility complete with a gaming area, bar, and restaurant.
VIGL Operations also submitted a casino license renewal application for its slot machines located at Caravelle Hotel and Casino in downtown Christiansted.
The CCC will now begin its deliberations in an expeditious manner before publicly announcing its decision on whether to grant the licenses.
The three CCC commissioners heard testimony in support of granting the company an initial racino license from a representative of The Big Island’s horsemen, a retiree and former vice chair of the Horse Racing Commission, and the director of the Division of Gaming Enforcement during a special meeting and hearing in the Frits E. Lawaetz Legislative Conference Room that was filled with attendees.
Additionally, Dodson James, chair of the St. Croix Horse Racing Commission, submitted testimony that was read into the record in support of granting the racino license.
Elroy Bates Jr., Flamboyant Park Horsemen Association president, discussed how the operation of a racino at the racetrack is necessary to bring in revenues to fund the maintenance of the track, as well as the $100,000 purses for 13 race days each year. He said horse racing will not occur on St. Croix if VIGL Operations does not receive a racino license.
“Without a racino, horse racing is not self-sustainable,” he said, noting 95% of racetracks on the U.S. mainland have racinos.
Bates said it has been eight years since the racetrack closed.
“With the issuance of this license, we are very much closer to opening,” he said. “The issuance of this license brings needed money into our economy, and much-needed jobs.”
Assistant Attorney General R. Oliver David, director of the Division of Gaming Enforcement within the Virgin Islands Department of Justice, discussed an investigation his office conducted when considering VIGL’s applications for both a casino license renewal and an initial racino license. He recommended both licenses be granted.
Betty Wilson, a retiree and former vice chair of the Horse Racing Commission, testified in support of granting the racino license.
Andrew Dubuque, VIGL Operations LLC chief financial officer and principal, discussed plans to construct a 15,000 square foot racino to house 200 slot machines, as well as offer off-track betting for those who want to watch horse racing from throughout the world and place bets.
“We are motivated to move as quickly as possible to make this dream a reality and get racing back to the people of St. Croix,” he said.
Despite the overwhelming support for VIGL to obtain a racino license, the CCC commissioners received written testimony in opposition.
Susan Varnes, president of Treasure Bay VI Corporation, owners of Divi Carina Bay Casino, submitted testimony that was read into the record urging the commission to not consider VIGL’s racino license application until the company is fully compliant with all binding agreements with the VI government, the horsemen, Traxco (a Treasure Bay VI subsidiary and former manager of the St. Croix racetrack), and TBVI.
Varnes discussed what she alleged was the unlawful removal of TBVI and Traxco from their operations at the racetrack, noting negotiations between the government and VIGL led to an agreement that Traxco and TBVI would return to the racetrack to operate a racino for up to two years. Varnes did not comment about VIGL’s suitability to operate a racino. She noted, however, that VIGL agreed to construct a racino for TBVI to operate for up to two years prior to VIGL operating a racino.
Marvin Pickering, CCC chair and CEO, questioned VIGL about a reference in its petition for a consent resolution of a settlement agreement, stipulated judgment and transition agreement.
Attorney Miles Plaskett, VIGL legal counsel, said the consent agreement came because of litigation between Divi and the government. He said VIGL’s part of the transaction was in the negotiation of a franchise agreement.
“The government was in the process of settling with Divi, and entered into the settlement agreement, and the consent agreement was to get rid of the litigation — declaratory judgment that was requested by Divi,” he said, adding there’s a transition agreement between the government, Divi, Traxco, and VIGL.
Plaskett clarified the franchise agreement that VIGL entered with the government requires the company to obtain a racino license to operate at the racetrack. He said the franchise agreement, which grants VIGL the franchise of operating horse racing and a racino at the track, becomes effective when VIGL obtains a racino license.
Luther Renee, CCC commissioner, asked if VIGL’s understanding is that whatever agreement that has been signed is contingent upon the company receiving a racino license. Plaskett said one of the conditions for the franchise agreement to become effective is that VIGL obtain a racetrack casino license.
Carolyn Hermon-Percell, CCC commissioner, said her challenge concerns the settlement agreement, the transition agreement and the stipulated judgment pertaining to the lawsuit involving Traxco and TBVI. She said those documents referenced VIGL constructing a temporary racino that would be turned over to TBVI to operate for up to two years.
“VIGL intends to comply with all of its agreements and all the rules and regulations of the VI Casino Control Commission, and also intends to enforce all of the agreements that it has entered into,” Plaskett said. “And so, we, VIGL will build a racino, the facility. We also expect that the parties will continue to talk to each other and to do what is mutually beneficial to each party to make sure that it works; that the arrangement that the parties have entered into works, and that it makes sense for each party.”
Renee read a section of the stipulated judgment that indicates the parties agreed that Traxco’s affiliate, TBVI, is duly authorized to reopen a racino at the racetrack and occupy and operate a temporary casino constructed by VIGL Operations or affiliates and approved by the CCC. Plaskett said the stipulated judgment must be read in conjunction with the franchise and transition agreements.
“All of them have to be read together in order for it to make sense,” Plaskett said.
