A rush job to enact Internet gambling legislation in the U.S. Virgin Islands is under way this week. Titled the "Virgin Islands Internet Gaming and Internet Gambling Act," Bill No. 24-0046 would introduce licensing for Internet gaming and Internet gambling in the U.S. territory. The legislation would also permit an Internet lottery to be set up on the island. Senators Alamando "Rocky" Liburd and Vargrave A. Richards introduced the bill March 27.
Proponents for the bill intend to use proceeds from Internet gambling to fund technology programs for public schools. Funds would be generated in several ways, including a $10,000 non-refundable application fee, as well as a 10 percent tax on the master franchisor's gross revenue. There would also be application fees, annual license fees and renewal fees to be paid into the Casino Control Commissions' Imprest Account.
The bill will be read tomorrow to the Senate Committee for Economic Development, Agriculture and Consumer Protection and may get pushed through for enactment within a week's time, sources say. Some suggest that the territory is rushing to beat Nevada to the punch in their hurry to adopt the legislation.
Tomorrow's hearing will include testimony from members of the public and private sectors. According to the Committee's published agenda, invited testifiers include Louis Willis, Director Elect, V.I. Bureau of Internal Revenue; Lauritz Mills, Director, Bureau of Economic Research; Ira B. Mills, Director, Office of Management & Budget; Bernice Turnbull, Commissioner of Finance; Pamela C. Richard, Commissioner-elect, Department of Tourism; Iver A. Stridirion, V.I. Attorney General, Department of Justice; Judge Eileen Petersen, Chairwoman, Casino Control Commission; John DeJongh, President, St. Thomas Chamber of Commerce; Carmelo Rivera, President, St. Croix Chamber of Commerce; and U.S. Virgin Islands Technology Initiative, LLC, represented by Nick Pourzal, Tom Colameco and Andy Ruppanner.
Judge Petersen, for one, would prefer that the bill not be enacted as it's currently written. "I would suggest some provisions that aren't in it," she said. In addition, Petersen believes that a request for proposals should be sent out so that major companies could be considered for the single license to be issued under the bill's terms. Instead, the bill would issue a "Master Franchise" license to U.S. Virgin Islands Technology Initiative, LLC for ten years. Petersen could not comment on how widely received the bill would be by legislators.
Tomorrow's meeting may be stormy. "I will not support it in its present form because of a lot of contradictions. That needs to be addressed," Committee Chair Sen. Aldebert Bryan told the St. Thomas Source. "Basically, Internet gaming needs to be controlled."
Petersen has already written to the island's local attorney general to discover what the federal stance is regarding Internet gambling. In response, she was told that the Justice Department believes Internet gambling to be illegal under the federal Wire Act. She suggested that the Virgin Islands' government, if it does legalize Internet gambling, could then become a test case to determine whether the Wire Act truly forbids games of chance.
Similar concerns have been raised in Nevada, where proponents of their licensing bill (AB296) cite a decision by a federal Circuit Court judge who opined that gaming was not banned under the Wire Act. As yet, there has been no decisive case that clarifies this aspect of the Wire Act.
IGN will publish a copy of the proposed bill, 24-0046, tomorrow.