Feb. 12, 2003 – In an ongoing investigation into illegal operations, the V.I. Lottery Enforcement Division has seized $10,000 worth of Puerto Rico Lottery tickets from a local dealer, according to a Government House release. And there were indications that the crackdown might extend to video lottery operations on St. Thomas and St. John.
The release stated that the V.I. Lottery executive director, Austin Andrews, had announced "an initiative to stem the flow of illegal lottery tickets" into the territory. It said notices had been sent to all licensed lottery dealers reminding them that any dealer caught selling illegal tickets would be subject to "immediate arrest, confiscation of the tickets and revocation of their V.I. Lottery license."
The dealer whose Puerto Rico tickets were confiscated was not identified, nor was the dealer's island of operation.
Andrews also said in the release that the enforcement initiative includes "illegally operating video lottery terminal machines." He said no one has been granted a license to "operate" the machines in the St. Thomas-St. John district, where they have been legal since Dec. 23. He said information regarding any unlawful operating of VLT's would be turned over to the V.I. Justice Department for prosecution.
Southland Gaming is a mainland company contracted by the government several years ago to run video lottery operations in the territory if and when they became legal. On Feb 5, however, Licensing and Consumer Affairs Commissioner Andrew Rutnik said Southland had not received a license from his department to do business in the territory.
Attorney General Iver Stridiron said last Friday that he expected to file a petition in Territorial Court by Wednesday asking for a declaratory judgment on the contract's legality. The contract has been questioned in light of reports that Southland has failed to pay taxes and make tax and financial reports. Stridiron said the government also would seek a restraining order and a permanent injunction to stop Southland from distributing any more VLT's in the territory.
Stridiron said on Friday that if the company did not have a V.I. business license, police could confiscate the terminals. But he said "a better tactic" would be to let the court decide the matter.
Video gambling on St. Thomas and St. John was legalized on Dec. 23, when the 24th Legislature overrode an earlier veto of enabling legislation by the governor. The recent introduction of the gaming terminals has generated widespread opposition, particularly on St. Croix, the only island in the territory where casino gambling is legal.
VLT opponents staged demonstrations on St. Croix and St. Thomas on Jan. 31, and leaders of various community organizations, including the territory's two Chambers of Commerce, have taken a public stand against them. Further protests are planned for Saturday at the Agriculture and Food Fair on St. Croix.
On Jan. 22, Gov. Charles W. Turnbull sent the Legislature a bill repealing the law legalizing video gambling, but no action has been taken on it. Senate President David Jones is on record as supporting video gambling operations.
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