May 3, 2001 — By vetoing a bill that would have allowed video lottery terminals in the territory, Gov. Charles Turnbull on Wednesday effectively ended weeks of arguments over such gambling — but not before the owners of St. Croix’s lone casino quietly decided to halt plans to expand its operation.
Criticism has swirled around Sen. Emmett Hansen II’s successful effort last month that would have opened the door to video lottery terminals in the territory. But without naming names, Eileen Petersen, chairwoman of the V.I. Casino Control Commission, said that current and prospective casino investors were ready to pull back if Turnbull didn’t veto the legislation because video gaming threatened the casino industry.
The only vocal supporter of the bill was Sen. David Jones, who held a press conference Wednesday morning before the veto announcement to say the threats of investors pulling out were just that. Even Hansen called for a veto of his own legislation after reportedly being briefed on what approval of his bill might mean. The measure originally passed on a 14-1 vote with only Sen. Lorraine Berry opposed.
Gerald Karcher of Benton Construction, the firm that built the Divi Carina Bay Casino, confirmed Wednesday that the casino owners had stopped plans for an 11,000-square-foot expansion of the casino until Turnbull decided the fate of the video lottery bill.
"We’ve been asked to shelve all further action until we see where this is going," Karcher told WSTX radio Wednesday before Turnbull announced his veto.
Jones scoffed at the idea of Divi halting its expansion, saying that video lottery would hardly make a dent in the $47.6 million the casino has generated since it opened in March 2000. He noted that four states and several Canadian provinces accommodate both casinos and video lottery.
Video lottery terminals throughout the territory would generate about $24 million in revenue, with a portion of that going to the V.I. government, Jones said.
"It’s been five years since the casino control act was passed and to date all we’ve seen is a remodeled hotel with 150 rooms," Jones said.
And despite the prospect of video lottery in the territory, Jones said he met earlier this week with a potential investor interested in developing a 600-room hotel-casino on St. Croix that would feature a convention center and golf course.
"They are very serious," Jones said of the investor. "They’ve been here four times."
Turnbull said he vetoed the video lottery bill because it runs counter to the casino control act.
"The public outcry that I have received from individuals, the business community and current and potential investors indicates further study is required," Turnbull said.
