After several months of effort, the U.S. Virgin Islands Casino Control Commission recently announced it had amended regulations for enterprise zone hotels and their casinos plus CCC bylaws. The changes were forwarded to the governor’s office and the Senate for final approval. Violet Anne Golden, CCC chairwoman and chief executive officer, said, “We believe these are a reasonable set of regulations.”
The new regulations require hotels and their casinos to invest 60 percent of annual net cash into improvements in the Christiansted or Frederiksted enterprise zones. The hotels and casinos must notify the CCC about these acquisitions and renovations within 60 days, and name the contractors and subcontractors. If the casino or hotel does not make the investment within a year, net surplus cash will be held in escrow; the hotel may withdraw funds for qualified investments. After 15 years, any funds remaining in the escrow account will become property of the CCC.
The amendments also include a list of individuals not eligible to invest in acquisitions or work as a contractor or subcontractor on renovations. The list includes V.I. senators and other elected or appointed governmental officials. The regulations also ban participation by CCC and Gaming Enforcement employees and any other CCC-licensed as employees or service industry providers, except those holding secretarial or clerical positions.
Currently Hotel Caravelle and Casino in downtown Christiansted is the only casino/hotel affected by the new regulations.
The bylaw changes were “administrative in nature,” Golden said. The commissioners also renewed and approved new and temporary licenses for casino employees, nongaming service providers and work permits.
