Development deal for St. Thomas racetrack gets OK

In a tense session held Thursday morning, the 34th Legislature narrowly voted in favor of legislation ratifying a settlement agreement between the government and two casino management companies, Southland Gaming of the Virgin Islands Inc. and VIGL Operations LLC, which each have invested interest in the reconstruction of the Clinton E. Phipps Racetrack facility on St. Thomas.

The legislation not only speaks to a development agreement regarding the racetrack but puts to rest a heated six-year long dispute between the warring casino companies that started in 2016 after the Legislature approved legislation requested by former Gov. Kenneth Mapp allowing VIGL Operations the ability to operate video lottery terminals within St. Croix’s Randall “Doc” James racetrack and place 200 of them at the St. Thomas’s Clinton Phipps racetrack.

The intent of the dated measure was to allow VIGL Operations the above mentioned abilities and in exchange VIGL Operations was to remodel both tracks and run the races within, but Southland Gaming objected to the arrangement as the entity was granted by the government exclusive rights to operate video lottery gaming in the U.S. Virgin Islands through a Video Lottery Agreement made in July 2003.

The dispute between the companies grew into a litigation, which was only recently settled out of court and spurred Gov. Albert Bryan Jr. to craft the bill to ratify an agreement between the government and Southland Gaming, ultimately with the intention to bring horse racing back to the territory.

Though senators were in support of horse racing, nearly half of the senators were not in support of the measure as many noted concerns surrounding ratification of which legal counsel confirmed, as written and without an amendment, the bill would subsequently uphold the 2003 Video Lottery Agreement granting exclusivity to Southland Gaming, which Sen. Kurt Vialet said, “The provisions of that exclusivity could block casino gaming in this district [St. Thomas-St. John] until 2041. That is the reality, in this bill we are ratifying a contract from 2003.”

And Vialet was not alone in his argument, alongside him was Sen. Janelle Sarauw who said, “We have used horse racing as a bargaining chip for more video lottery terminals, for another exclusive contract … We are ratifying, 19 years later, a practice that was not lawful. We are bringing an existing practice into conformity.”

The concern surrounding the 2003 agreement was so prominent it prompted Vialet to motion for a technical amendment asking the date July 29, 2003, be struck from the bill.

Sen. Carla Joseph objected to the amendment having said it changes “the major intent of this legislation,” and she’s correct as what it does is remove the exclusivity granted from the contract entered into on that date.