ST. CROIX — VIGL Operations LLC, the company that has a franchise agreement with the Virgin Islands government to reconstruct the Randall “Doc” James Racetrack, is now ready to start building a casino along with all the other components of a state-of-the-art racing facility following today’s unanimous approval by the Virgin Islands Casino Control Commission of an initial casino license for one year during a special meeting and hearing at the CCC in Estate Orange Grove.
VIEW HEARING: Virgin Islands Casino Control Commission special meeting and hearing, April 18
Additionally, the three-member Casino Control Commission unanimously approved VIGL Operations’ application for a license renewal to continue operating its casino at the Caravelle Hotel and Casino in downtown Christiansted for another four years. Caravelle Group owns the hotel and casino, while its subsidiary, VIGL Operations, runs the casino.
The license to operate a casino at the racetrack, known as a racino, was the last item VIGL needed to begin building a 15,000 square foot casino with a bar and restaurant, as well as off-track betting.
Since the racino will serve as the primary revenue source to sustain racing operations and fund up to $1.3 million in annual race purses, the success of the entire $20 million racetrack project hinged on the Casino Control Commission’s approval of the racino license.
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Now that the CCC has approved VIGL Operations’ initial racino license, the company is motivated to move forward with the overall racetrack project, according to Andrew Dubuque, VIGL chief financial officer and Caravelle Group managing partner.
“We’re over the moon,” Dubuque said about receiving the racino license after today’s special hearing. “It’s fantastic.”
Dubuque pointed out that VIGL Operations has been working toward reconstructing the St. Croix racetrack since 2016, noting the family-owned company experienced the hurricanes of 2017, the coronavirus pandemic, and multiple amendments to its agreement with the government along the way.
“As you know, we lost St. Thomas but we retained St. Croix, which we’re very excited about because we’re really a Crucian-based company, so we’re over the moon,” he said. “We’re thrilled. We can’t wait.”
While VIGL Operations was initially slated to reconstruct both the Randall “Doc” James Racetrack on St. Croix and the Clinton E. Phipps Racetrack on St. Thomas, its sole focus is now on the St. Croix racetrack. Southland Gaming Virgin Islands is developing the St. Thomas racetrack, where it will operate video lottery terminals.
As the project to develop a racing facility on St. Croix moves ahead, Dubuque said he expects to hold the first horse races about the same time the casino gets completed. He said he’s hopeful to get it done in a year.
“There’s no reason that racing can’t happen on, or shortly after the day that we open,” he said.
Dubuque is ready to begin construction upon receipt of a resolution from the CCC that outlines certain requirements.
“If those conditions are conducive to me starting, I’m gonna start as soon as humanly possible, but I don’t know what those conditions are,” he said. “I’m assured by the Casino Control Commission that they’re minor and shouldn’t delay our activity.”
Marvin Pickering, CCC chair and chief executive officer, said several conditions the CCC is working to finalize based on the investigative reports and items that were lacking will be included in the resolution.
“There’s certain conditions as to filing of reports, instituting a compliance office, compliance officers, compliance personnel, things of that nature,” he said after the hearing.
Pickering pointed out that today’s hearing was the second one the CCC held on VIGL’s casino application matters, noting the first was held February 21 in the Frits E. Lawaetz Legislative Conference Room. He pointed out the previous hearing provided the commission an opportunity to receive testimony from the applicants, industry stakeholders, and interested individuals from the public in addition to the Virgin Islands Department of Justice, Division of Gaming Enforcement.
READ MORE: “CCC evaluates initial license application for racino at Randall ‘Doc’ James Racetrack.”
Pickering discussed the eight-month vetting process in coordination with the Division of Gaming Enforcement and the division’s consultant, Spectrum Gaming Group, that led to the commission’s approval of both casino licenses. He said the process included interviews with the applicants and their known associates, media searches, and review of criminal background checks, financial transactions dating back five to 10 years, and court records. He said the commission would not be deterred to fulfill the letter of the law, no matter who complained or how long it took.
“The commission is not unmindful that a traditional, favorite, and beloved pastime of our community — horse racing — is impacted by one of the matters before us today,” he said. “A vote to approve the application for the casino license at the Randall ‘Doc’ James Racetrack will be the pathway to the resumption of horse racing on St. Croix; I get that.”
Pickering said the commission was also aware of the financial and economic benefits that would accrue on the resumption of horse racing on St. Croix to the treasury of the VI government, and by extension to the commission itself on many levels. He noted increased fees and tax revenues as well as additional employment opportunities.
“However, the bottom line and overarching issue before the commission is this — the determination of integrity and financial suitability of the applicants to be granted these licenses,” he said. “We only ask for the process to be respected in this instance and in the future.”
After the hearing, Pickering said the vetting process was “intensive,” adding that it is designed to be that way.
“We need to know that the applicants coming before us are above reproach, there are no skeletons in their closet to be granted a casino license,” he said. “It may seem like an inordinate amount of time, and we understand that patience was growing thin with the process, but that is the process, and we have to respect the process. Putting it in perspective, we received those applications in August of 2023. Today, it’s approved April 18.”
