(a) To promulgate such rules and regulations governing the establishment and operation of the lottery as it deems necessary and desirable. Such rules and regulations may include, but shall not be limited to, the following:
(1) The types of lottery to be conducted may be classified as video lottery gaming machines or devices, or any similar type of gaming machine or device, provided that video lottery gaming machines or devices may only be operated in the St. Thomas/St. John district of the Virgin Islands, and the other types of lottery conducted shall include:
(i) the official lottery in effect on January 1, 1985;
(ii) instant lottery, which shall be a manual scratch-off type lottery; and
(iii) such additional lotteries as approved pursuant to section 246a of this chapter.
(2) The price, or prices, of tickets or shares in the lottery.
(3) The numbers and sizes of the prizes on the winning tickets or shares.
(4) The manner of selecting the winning tickets or shares, provided, however that the manner of selection shall ensure that a ticket which has been sold shall be selected as a winning ticket for each and every major prize at each and every ordinary drawing, intermediate drawing, extra-ordinary drawing, or special drawing.
(5) The manner of payment of prizes to the holders of winning tickets or shares.
(6) The frequency of the drawings or selections of winning tickets or shares, without limitation.
(7) Without limit as to number, the type or types of locations at which tickets or shares may be sold.
(8) The method to be used in selling tickets or shares.
(9) The licensing of agents to sell tickets or shares, including the setting of the fee for the license, provided that no person under the age of 21 shall be licensed as an agent.
(10) The manner and amount of compensation, if any, to be paid licensed sales agents necessary to provide for the adequate availability of tickets or shares to prospective buyers and for the convenience of the public.
(11) The apportionment of the total revenues accruing to the Lottery, which shall, in any event, be as follows:
(i) Transfer of not less than twenty percent (20%) of the net income of the lottery from all games authorized by this chapter to the General Fund of the Treasury of the Virgin Islands; provided that fifty percent (50%) of the portion allocated to the General Fund shall be utilized by the Department of Education, twenty-five percent (25%) shall be utilized by the Office of Veterans Affairs and the remaining twenty-five percent (25%) shall be distributed evenly among the Disabled Persons Special Fund established pursuant to the provisions of Title 34, section 14b, Virgin Islands Code; the Small Business Development and Loan Fund established pursuant to Title 33, Section 3031, Virgin Islands Code; the Textbook Reimbursement Revolving Fund established pursuant to Title 17, section 42, Virgin Islands Code; and the summer employment of youth program.
(ii) Payment of prizes to holders of winning tickets or shares;
(iii) Payment of all costs incurred in the operation and administration of the Lottery except that not more than 75% of the revenues derived from the games under contracts between the Virgin Islands Lottery and private contractors of lottery games, including the revenues derived under contracts with contractors of video lottery games authorized under title 32 V.I.C. § 246(a)(1), may be used to pay delinquent, prior obligations;
(iv) Transfer of 15% of the proceeds derived from the games under each contract between the Virgin Islands Lottery and a private contractor of lottery games, including the proceeds under a contract with a contractor of video lottery games, authorized under title 32 V.I.C. § 246(a)(1), into the Virgin Islands Educational Initiative Fund established in 33 V.I.C. § 3093, 10% to the Government Employees' Retirement System to fund annuitants' annual cost of living bonuses and 15% in the Pharmaceutical Assistance to the Aged Program, established under title 34, sections 40–49, of this Code; transfer three percent (3.0%) of the proceeds derived by the Virgin Islands Lottery from video lottery on St. Thomas and St. John as follows:
(i) .75% to the Horse Racing Improvement Fund as established in title 33 V.I.C. § 3044 for use as authorized therein by the St. Thomas-St. John Commission of the Virgin Islands Horse Racing Commission;
(ii) 1.25% to the Lease Franchisee holder or any temporary permittee, operator or promoter of live horse races at Clinton Phipps Park to supplement purses for live races at Clinton Phipps Park;
(iii) .50% to the Department of Agriculture to be used for the stray animal operations and recovery;
(iv) .50% to be administered by the Department of Agriculture to Golden Age Ranch for the protection and the care of retired and injured horses. The Department of Agriculture in conjunction with the Virgin Islands Lottery may award these funds to Golden Age Ranch and any other organization whose function is for the protection and care of retired and injured horses. Before awarding funds, the Department of Agriculture shall verify that the organizations that are granted the award are in good standing with the Government of the Virgin Islands and are in compliance with any rules set by the Department in order to receive the funds. The Department of Agriculture shall cease funding any organization that is no longer in operation and may cease or suspend funding to any organization that is in violation of any rules set by the Department of Agriculture for the granting of the award.
(v) Six percent (6%) of the revenues derived from video lottery terminals located at the Clinton Phipps Racetrack in St. Thomas-St. John district shall be divided between the Department of Sports, Parks and Recreation for development of youth sports in St. Thomas and St. John and the Virgin Islands Olympic Committee equally.
(vi) Transfer, not less than four times each year in accordance with accepted accounting procedures which shall be adopted by the Lottery, of all proceeds remaining after compliance with subparagraphs (i), (ii), (iii) and (iv) hereof to the General Fund of the Treasury of the Virgin Islands; provided, however, that the Lottery shall maintain a reserve fund in such amount as may be approved annually pursuant to the provisions of section 260 of this chapter.
(12) Such other matters necessary or desirable for the efficient and economical operation and administration of the lottery and for the convenience of the purchasers of tickets or shares and the holders of winning tickets or shares.
(b) To amend, repeal, or supplement any such rules and regulations from time to time as it deems necessary or desirable.
(c) To advise and make recommendations to the Director regarding the operation and administration of the lottery.
(d) To report monthly to the Governor and the Legislature the total lottery revenues, prize disbursements and other expenses for the preceding month, and to make an annual report, which shall include a full and complete statement of lottery revenues, prize disbursements and other expenses, to the Governor and the Legislature, and including such recommendations for changes in this chapter as it deems necessary or desirable.
(e) To report immediately to the Governor and the Legislature any matters which shall require immediate changes in the laws of the Virgin Islands in order to prevent abuses and evasions of this chapter or rules and regulations promulgated thereunder or to rectify undesirable conditions in connection with the administration or operation of the lottery.
(f) To carry on a continuous study and investigation of the lottery throughout the Virgin Islands: (1) for the purpose of ascertaining any defects in this chapter or in the rules and regulations issued thereunder by reason whereof any abuses in the administration and operation of the lottery or any evasion of this chapter or the rules and regulations may arise or be practiced; (2) for the purpose of formulating recommendations for changes in this chapter and the rules and regulations promulgated thereunder to prevent such abuses and evasions; (3) to guard against the use of this chapter and the rules and regulations issued thereunder as a cloak for the carrying on of organized gambling and crime, and (4) to insure that said law and rules and regulations shall be in such form and be so administered as to serve the true purposes of this chapter.
(g) To make a continuous study and investigation of: (1) the operation and the administration of similar laws which may be in effect in other jurisdictions; (2) any literature on the subject which from time to time may be published or available; (3) any Federal laws which may affect the operation of the lottery, and (4) the reaction of the Virgin Islands citizens to existing and potential features of the lottery with a view to recommending or effecting changes that will tend to serve the purposes of this chapter.
(h) To review and make recommendations thereon to the Governor not later than the 1st day of April of each year of an annual plan of operations and a statement of projected revenues and expenditures submitted to it by the Director.
(i) To establish a division with the responsibility, authority and powers to enforce the provisions of Title 14, Sections 1221, 1222, and 1223, Virgin Islands Code. Any person employed under this authority shall have the same powers and authorization as that of a peace officer as defined in Title 5, Section 3561, Virgin Islands Code.
(j) To transfer not less than $2,270,000 from the net income of the lottery from all games authorized by this section to the Government Employees' Retirement System before July 15 each year to be used exclusively as an annual bonus payment for annuitants and pensioners pursuant to title 3, chapter 27, section 729b of this code. The sum may be paid in quarterly installments to the retirement System so long as the total amount is received before July 15.