While many waxed poetic on the negative effects of gambling to society, most senators felt that passing a bill to bring racetrack-casinos, aka racinos, to the territory would help revitalize a struggling local horse racing industry and bring more money to the horse owners that have become invested in it.
The bill would allow for gaming — whether through casino-style slot machines on St. Croix or video lottery terminals (VLTs) on St. Thomas — at racetracks on both islands. Locally, the concept of racinos has been stirring controversy for years, and during the most recent hearings in the Senate, one of the primary concerns was that the 22.5 percent Racetrack Gaming Tax initially proposed in the bill would greatly deplete the St. Croix racetrack’s gross monthly revenues.
The bill was amended in the Senate’s Rules and Judiciary Committee last week, spreading the tax out in a sliding scale from 16 percent per year on gross revenues up to $12 million, to 22.5 percent per year on gross revenues above $20 million. It was further amended during the Senate’s full session Thursday, delineating the sliding tax scale for St. Croix only, and setting other provisions for St. Thomas.
The amendment, offered by Sens. Celestino A. White Sr., Carlton "Ital" Dowe, Usie R. Richards and Patrick Simeon Sprauve, states that 4.5 percent of collections from VLTs set up at the Clinton Phipps racetrack would be deposited into a newly established St. Thomas Horse Race Revenue Fund, to be used for racing purses.
Another 6 percent of the money will be divided equally between the Horse Racing Commission, V.I. Olympic Committee and Housing, Parks and Recreation.
When the bill passed with 13 votes in favor and two against, bill sponsor Sen. Neville James thanked the objectors for sticking to their convictions — including Sen. Nereida Rivera-O’Reilly, who said she "firmly believes" that "expanding access to casino gambling will only serve to increase the problems we’re experiencing."
Rivera-O’Reilly said research has shown the introduction of casinos on St. Croix hasn’t shown an increase in hotel occupancy rates or flights to the island, but can be linked to a jump in vehicle thefts, burglaries and the writing of bad checks. She also recounted a conversation with one St. Croix resident who was facing foreclosure on his house because he had spent most of his time and money in the casino.
For James, however, the ability of being able to pump more money into the economy — particularly to help a struggling St. Croix still waiting for a stack of proposed hotel developments to come through — is the main draw of the bill.
He also said the bill had been extensively vetted through the Senate, with months of going back and forth between committees before finally making it through Rules last week.
"If it’s one thing they can’t say is that we rammed this bill through," James joked.
Senators also approved bills:
–banning smoking indoors at bars, restaurants and public places (the bill, however, allows for smoking in parking lots, public streets and outdoor public places — as long as the smoking is more than 20 ft. from places where smoking is banned);
–authorizing the Public Finance Authority to enter into a memorandum of understanding with the University of the Virgin Islands and the Career and Technical Training Center at St. Croix’s Educational Complex that would allow for the King’s Alley Hotel to became a training center for students hoping to enter the tourism industry;
— praising aviation pioneer Gen. Charles Blair, and naming the St. Thomas seaplane terminal after him; and
–amending the rules affecting enterprise zones and giving economic planners more tools with which to try to redevelop areas of Frederiksted, Christiansted and Charlotte Amalie by extending tax breaks and other economic benefits, and making them available to individuals, not just businesses; and
–honoring and commending Tabarie Henry for his accomplishments in both national and international track and field competitions.
Senators also approved the nominations of Felipe Ayala Jr. and Robert Moron to the V.I. Historic Preservation Commission.
All senators were present during Thursday’s session.
