Is casino gambling coming to St. Croix’s Randall “Doc” James horse track?
At a meeting of the Committee on Housing, Sports and Veterans Affairs held Monday in Frederiksted, track operator Traxco said it needs to bring in gaming machines and make the track a “racino” to stay in business. St. Croix horse owners, racers and breeders pushed for the idea as well.
Susan Varnes, president of Traxco, said there is less wagering today than in 2004 when the company took over operating the St. Croix racetrack, and the agreements on revenue sharing with the St. Croix Racing Commission and with the Department of Housing Parks and Recreation were based on projections that did not materialize. Traxco and Divi Carina Bay Casino are both owned by Mississippi-based resort and casino chain Treasure Bay.
“During the last four years in operation, Traxco has lost over $6 million,” Varnes said. “The fact is it is impossible to be profitable at this racetrack without racino legislation. This is a fact all across the country.”
By Taxco’s calculations, adding thirty slots or games to the racetrack operation would “help stop the bleeding a bit,” she said. “At 80 games is where we start to break even.”
Garret Ritter, vice president of the St. Croix Thoroughbred Owners and Breeders Association, said horse owners were for promotion of horse racing on all fronts, including casino gambling at the track. The breeders are also asking for an appropriation of $8 million to “jump start the breeding and racing industry in the Virgin Islands,” he said.
Both Ritter and Wayne Biggs, chairman St. Croix Horse Racing Commission, want their organizations to get funding from any casino revenues generated at the track.
“The commission’s current and only funding source is from the fees for licenses and registration, fines and payments,” Biggs said. “This amount is minimal … Any type of gaming and or ‘racino’ legislation must include a percentage allocation for the commission as the regulatory body of the sport unless the commission will receive consistent yearly budget appropriations for its operations from the central government.”
Sen. Michael Thurland and White both expressed support for such legislation.
“We are definitely poised to help you out in getting where we need to go,” Thurland said. White said a bill sponsored by Sen. Neville James to allow casino gaming at the track was being reviewed by legal counsel.
Housing Parks and Recreation Commissioner St. Claire Williams said he favored the idea too.
“I do serve as an ex officio member of the Horse Racing Commission and I support it,” he said. “I think it is needed for horse racing to survive.”
In other business, Williams briefed the committee on Housing Parks and Recreation’s efforts to resurface and upgrade the territory’s sports facilities and Insular Superintendent of Schools Gary Molloy spoke about school athletic programs. Along with horse racing, the committee took testimony about drag racing, adult and youth baseball and softball, basketball, cricket, swimming, volleyball, track and field and the V.I. Olympic Committee. Every group asked the Legislature for some financial help to boost their organization’s efforts. A drop in tax revenues to the territory may make extra appropriations difficult this year.
But White, Thurland and some of the other senators were optimistic they might find funding either from new bond debt or by re-directing money that was previously appropriated but not spent.
Monday’s hearing was an information gathering exercise. No bills were before the committee and no votes taken. Present were; White, Thurland, Sens. Wayne James, Terrence “Positive” Nelson Nereida “Nellie” O’Reilly and Patrick Sprauve.
