Horseracing Commission Debates Interim Off-Track Betting Licenses, Cites Risk Without Franchise Holders

The joint Horseracing Commission will seek the attorney general's opinion on how exactly to move forward with granting permission to operate off-track betting (OTB) facilities.

Off-track betting facilities are state-regulated venues where wagers on horse races can be placed without being physically present at the racetrack. These establishments typically simulcast live races and allow patrons to bet on the outcomes as though they were at the track itself. Revenues from OTB operations are generally tied back to the racing industry, with laws in many jurisdictions ensuring that a portion benefits the track franchise holders, horsemen, and the state.

Currently, Virgin Islands law gives the right to operate such facilities to the franchise holders of the territory's two horse-racing tracks. “There had been some operated by VIGL,” St. Thomas HRC chair Hugo Hodge Jr. pointed out, “but of course, they're no longer in that role or capacity.”

“As a matter of fact,” he continued, “we do not have anyone as an official franchise holder in either district right now.” One OTB facility is currently doing business on St. Thomas, Mr. Hodge said, noting that its operations are being investigated to ensure that things are above board.

There is interest from some entities in establishing OTB facilities on St. Croix, commissioners learned. However, because of how the laws are written, Mr. Hodge says that there are a few questions to be answered beforehand, the first being “whether we are statutorily allowed to issue permission or grant permission for someone to open an OTB.”

If the commission does have such authority and does grant permission to open an OTB to a non franchise holder, the next question to be answered is “what happens to said business when we do have a franchise holder,” Mr. Hodge, reminding that the benefit of operating such a facility is supposed to accrue to the franchise holder by law. Would an OTB run by a non-franchise holder have to close once a different company acquired the franchise for the race track.  Read more...https://viconsortium.com/vi-sports/virgin-islands-horseracing-commission-debates-interim-off-track-betting-licenses--cites-risk-without-franchise-holders