Disregarding Objections, Casino Control Commission Approves License For Caravelle Hotel Casino

ST. CROIX — The Casino Control Commission on Monday approved a temporary license for V.I.G.L. Operations, LLC, to run a slot machine casino at Caravelle Hotel in the downtown Christiansted area.

The approval was unanimous, with Chairwoman and CEO of C.C.C. Violet Ann Golden, along with commissioners Henry Richardson and Roderick Moorehead voting in favor of granting the license, stating that in their assessment, V.I.G.L. had fully complied with VI Code Chapter 21, Title 32. The resolution approving the license states that C.C.C., after examining “management controls and security systems and plans in place for the operation of the requested casino,” was satisfied with its findings.

The commission’s approval — bolstered by a Senate override of a Governor Mapp veto — comes amid fierce opposition from the Mapp administration and the Department of Justice’s Division of Gaming Enforcement (D.G.E.).

By way of Chief Deputy Attorney General Joseph Ponteen, D.G.E. argued that V.I.G.L. had failed to satisfy certain requirements of the Virgin Islands Casino and Resort Control Act, and that D.G.E. was not notified of Monday’s meeting.

Furthermore, Mr. Ponteen contended that equipment testing was still ongoing, and that D.G.E. had identified issues with the casino’s security and surveillance system, therefore more time was needed to make sure that they were operable. Mr. Ponteen also contended that D.G.E. had not received casino blueprints, however V.I.G.L.’s Lance Griffith disputed that claim.

The main contention for the Mapp administration was the way in which the hotel — through senators — sidelined the law to make accommodation for V.I.G.L. When C.C.C. granted V.I.G.L. a Class Four license to operate a casino with 50 to 70 slot machines back in February, it included provisions that required the facility to have at least 75 hotel rooms. It also required a reinvestment of 60 percent of the casino’s net profit for the first ten years, and a banquet room that’s able to house 400 people.

“Let the owner of the hotel complete the necessary investments in order to open the doors of the casino,” Mr. Mapp said in March after vetoing a measure that sought to allow the casino to operate at current capacity of 43 rooms. “To do otherwise is [to] have the gambling patrons build the rooms and spaces. That is not the purpose of the Casino Control Act’s requirement that hotels invest and have a total of 75 rooms before they could operate a casino.”

He added: “Moreover, the section does not provide any criteria or guidance on how the Casino Control Commission would evaluate a request for such a waiver, and leaves unfettered discretion to the Casino Control Commission’s members, which could lead to subjective and inconsistent approval of waivers.”

Senators, however, acting unanimously, voted to override the governor’s veto, clearing the path for Caravelle Hotel to move forward.

The operations certificate approved yesterday is good for one year, and requires that V.I.G.L. pay for its license ($80,000 for the first year), among other mandates.