U.S. Virgin Islands Governor Kenneth Mapp recently announced VIGL Operations LLC, a private company, will invest more than million per facility to expand and modernize the Clinton E. Phipps racetrack on St. Thomas and the Randall “Doc” James racetrack on St Croix. VIGL also will take over the management of both tracks and partner with the government to make the local horseracing industry more profitable and attractive to racing enthusiasts and horse owners worldwide.
VIGL currently operates the renovated Caravelle Hotel & Casino in Christiansted. Its parent company, B & B Amusements, designs and operates entertainment venues in Illinois and Louisiana.
Mapp stated, “Today I present to the people of the Virgin Islands a comprehensive package of agreements and related documents between the government and VIGL Operations LLC, an experienced manager of horserace tracks and gaming facilities, for the revitalization and operation of the horserace tracks on both St. Thomas and St. Croix. I also present legislation amending the Virgin Islands Horse Racing Industry Assistance Act of 2010 that will help to modernize our horseracing industry, making it a source of pride and economic value to the people and the government.”
Mapp was referring to a special legislative session he called on November 28 to ratify the franchise agreement and update current local horseracing laws. Mapp noted the proposed regulations will be in line with other “great horseracing jurisdictions” in the states.
Under the terms of the 20-year concession contract, VIGL will refurbish and expand the territory’s two racetracks. That includes constructing bars, restaurants, lounges, restrooms, viewing stands, parking, jockey locker rooms and vendor kiosks, as well as new barns, quarantine areas and veterinary care facilities for horses. Mapp said, “The end result will be two new racetracks. Numerous new jobs will be created in both the construction and operations phase and we anticipate substantial new revenue streams.”
Both racetracks will offer a minimum of 18 live race days annually in the first three years and a minimum of 24 live race days after that. Minimum purse sizes will be $100,000 per race day; much larger purses will be guaranteed for the annual Carnival and Festival horse races.
The deal also calls for VIGL to provide horse-racing related training and scholarships of up to $100,000 annually.
Mapp said more than 40 percent of the redevelopment must be finished within two years and both projects must be “substantially completed” within 42 months. Under the agreement, VIGL will be allowed to operate racinos with a limited number of gaming machines at each site.
VIGL will not be eligible for tax benefits and in fact will pay higher taxes on gaming revenues than those paid by casino operators. VIGL will also be subjected to annual license fees, franchise taxes and rent payments of $108,000 annually on St. Croix and $24,000 annually on St. Thomas.
A new nine-member Horse Racing Commission will be established to oversee both operations.
Mapp noted, “Horseracing has a long history in the territory, but has fallen on hard times here and elsewhere. The agreement we have reached with VIGL, and the legislation that will accompany it, will bring a substantial infusion of investment into the territory, a fresh source of government revenue and the rebirth of the Virgin Islands’ storied horse racing industry.”
