Months of negotiations with lawmakers and stakeholders produce revised agreements aimed at restoring horse racing in both districts and advancing $27 million in private investment
U.S. VIRGIN ISLANDS — Governor Albert Bryan Jr. is urging the 36th Legislature to approve revised horse racing legislation during its November session, following months of negotiations with lawmakers, horsemen’s associations and other stakeholders that have resulted in additional safeguards, stronger government oversight and a proposed $27 million private investment to restore and sustain horse racing on St. Croix and St. Thomas.
In an Oct. 28 letter to Senate President Milton E. Potter, Governor Bryan transmitted a substitute to Bill No. 36-0313, along with renegotiated agreements with SGVI Inc., addressing outstanding legislative concerns and incorporating revisions recommended through extensive stakeholder consultations.
The Governor emphasized that the administration has worked diligently to resolve differences, accommodate concerns and establish a framework that protects the government’s interests while creating a sustainable future for horse racing in both districts.
“Over the last several months, we have met with all of the stakeholders, listened carefully to their concerns and incorporated all of the recommended revisions into these proposed agreements,” Governor Bryan said. “We have worked with our horsemen, our legislators and our private sector partners to get to this point. We have negotiated in good faith, made the necessary adjustments and addressed the issues that were raised. Now it is time to move forward and deliver on our commitment to restore horse racing in both districts.”
The revised legislation establishes the legal framework necessary to advance reconstruction of the Randall “Doc” James Racetrack on St. Croix and support continued racing operations at the Clinton E. Phipps Racetrack on St. Thomas. Legislative approval would allow the agreements to take effect and move the Territory closer to restoring a sustainable, territory-wide horse racing industry.
Horse racing has not resumed at the Randall “Doc” James Racetrack since Hurricanes Irma and Maria devastated the facility in September 2017. Nearly a decade later, reconstruction has yet to begin, despite the sport’s longstanding cultural and economic significance to St. Croix.
Under the proposed agreements, SGVI Inc. would invest approximately $27 million of its own funds to rebuild the St. Croix racetrack, make additional improvements to the Clinton E. Phipps Racetrack, develop additional gaming facilities on St. Thomas and serve as the promoter of racing events at both facilities.
The company has already completed reconstruction of the Clinton E. Phipps Racetrack and sponsored 12 race days there at its own expense, demonstrating the potential for renewed racing activity under the proposed arrangement.
The latest revisions follow an Oct. 14 meeting between Governor Bryan, Senate President Potter, Senate Committee on Budget, Appropriations and Finance Chairman Novelle E. Francis Jr. and other lawmakers to address remaining concerns surrounding the agreements.
Following those discussions, the Governor secured additional changes from SGVI Inc., including revised exclusivity language under the Video Lottery Services Agreement, clearer restrictions governing video lottery terminals at the St. Croix racetrack and provisions strengthening the government’s oversight of the proposed development.
The revised St. Croix agreement now requires the completed racetrack facility to have a minimum appraised investment value of $15 million and makes periodic government inspections during construction mandatory.
The substitute legislation also restores several provisions omitted from the bill currently before the Legislature. These include statutory authorization for video lottery operations at the St. Croix racetrack, clarification of enforcement responsibilities for the respective horse racing commissions and amendments needed to reconcile existing casino laws with the proposed agreements.
Additionally, the revised measure preserves government revenue through a partial gross receipts tax exemption. Under the proposed structure, the franchise holder would pay 25% of the gross receipts taxes otherwise due during the first five years following the turnover date, increasing to 50% beginning in the sixth year.
These revisions reflect the administration’s efforts to balance the financial considerations necessary to attract private investment with appropriate protections for the government and taxpayers.
Governor Bryan said the lengthy negotiations have produced agreements that reflect the concerns and priorities of the parties involved, removing major obstacles that previously stood in the way of legislative consideration.
“We have spent months working through the details because we understand how important it is to get this right,” Governor Bryan said. “But we also have to recognize what continued delays mean for our horsemen, our businesses and the families who have been waiting for racing to return. Every month that passes is another month without that economic activity and another missed opportunity to preserve a tradition that means so much to our people.”
The Governor emphasized that passage of the legislation would benefit both the St. Croix and St. Thomas districts by establishing a coordinated framework for racetrack operations, private investment and racing promotion.
Beyond the racetracks themselves, renewed racing activity would create opportunities for trainers, breeders, jockeys, vendors and small businesses while strengthening an important part of Virgin Islands culture.
The administration initially transmitted the proposed agreements in April and submitted additional revisions in July following consultations with lawmakers and recognized horsemen’s associations in both districts. The latest submission incorporates the results of subsequent negotiations and corrects legislative drafting issues necessary to give legal effect to the agreements.
With those revisions now before the Legislature, Governor Bryan is calling for timely action.
“Horse racing is more than a sport in the Virgin Islands. It is part of our heritage, our culture and our economy,” Governor Bryan said. “We have done the work, brought the stakeholders to the table and made the changes necessary to reach this point. The opportunity to restore racing in both districts is now before us. I respectfully urge the Legislature to take up this measure in November and help us turn years of discussion and negotiation into real progress for the people of the Virgin Islands.”
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