The Virgin Island Casino Control Commission recently approved more slots at the Hotel Caravelle & Casino in St. Croix, but said owners VIGL Operations LLC must fulfill terms of the gaming license before receiving an extension. Last February VIGL was granted a 1-year license to operate a Class Four casino with up to 70 slot machines. But the license also required the casino be attached to a hotel with 75 rooms and banquet facilities for 400 people. The license also required VIGL to reinvest 60 percent of cash flow over the next 10 years.
At the 2016 hearing, VIGL Chief Operating Officer and Vice President Lance Griffith said the company was negotiating to purchase property adjacent to Caravelle Arcade to expand the hotel and build a banquet room. But at the recent hearing Griffith said negotiations with the property owners “were not proceeding as hoped.” He said VIGL was pursuing other ways to comply with the casino requirements by August 2018.
In November, VIGL bought the 41-room King Christian and the 36-room Company House hotels for an undisclosed price. Griffith said VIGL paid $1.1 million back taxes. Both hotels need major renovations, especially the King Christian. “We’re not giving up on building new hotel rooms,” Griffith said.
He told commissioners the company believes the Caravelle Hotel lobby and adjacent Rum Runners restaurant fulfill the banquet facility. He added Company House’s conference room holds 80-100 people and meets that requirement. Commissioners did not agree the purchase of the two properties met the gaming license stipulations. VICCC attorney Andrew Simpson said, “The law requires the rooms to be renovated or completely rebuilt. They have until August, but they don’t qualify now. I don’t think it’s appropriate to grant a permanent license at this time because they haven’t met the requirements.”
Commissioners said they will wait six months to see if VIGL qualifies for a permanent casino license and operations certificate.
Commissioners did approve VIGL’s request to retrofit a retail store for 40 additional slot machines “to meet customer demands,” said General Manager Jason Williams.
Commissioners also heard updates on damage and renovation related to Hurricanes Irma and Maria. Officials from Divi Carina Bay Resort and Casino said their facilities sustained significant hurricane damage but Caravelle had minimal damage, such as ceiling tiles, doors and supplies.
Divi General Manager Anton Kuipers said the casino laid off 144 employees, with 28 remaining. Divi Hotel General Manager Andreas Conhoff said only 40 out of 200 rooms are being used and 100 of 125 employees have been let go with benefits.
Both managers said they’re waiting for insurance commitments before rebuilding. Commissioners granted the operations a 6-month license renewal with progress reports due in three months.
