The Virgin Islands Government has rejected claims that a proposed agreement to rebuild the Randall "Doc" James Racetrack on St. Croix unfairly favours SGVI Inc., saying the deal includes appropriate financial terms and regulatory controls.
Raymond Williams, Executive Director of the Virgin Islands Lottery, responded to criticism of the project, calling horse racing restoration an important part of island culture that would generate economic activity and jobs.
Williams challenged assertions that SGVI receives tax breaks unavailable to other operators. He noted that revenue from the proposed Entertainment Centers to the Virgin Islands Lottery is capped at 34 percent plus gross receipts tax. By contrast, video lottery operations average 32 percent plus gross receipts tax, while casino operators pay a graduated tax of 8, 10, and 12 percent with no gross receipts taxation, he said.
On oversight, Williams highlighted gaps in casino regulation. The Casino Control Commission reported at a recent Senate budget hearing that hundreds of casino employees remained in background investigation queues, some for more than a year, yet were allowed to work in casinos anyway, he noted. The Virgin Islands Lottery conducts background investigations on contractors and retailer owners and maintains current compliance, he added.
Williams also pointed to SGVI's track record. The operator faces strict requirements identical to those in other video lottery jurisdictions and has never requested concessions or variances, he said. No competing entity has stepped forward to finance the St. Croix racetrack, he explained, which is why SGVI was selected.
The video lottery program has generated revenue for the territory and created jobs in the St. Thomas and St. John district, Williams said. The proposed St. Croix project is expected to create additional employment on St. Croix.
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