(a) No casino shall operate unless all necessary license and approvals therefor have been obtained in accordance with law.
(b) Except as provided in subsection (d), only the following persons shall be eligible to hold a casino license; and, unless otherwise determined by the Commission in accordance with subsection (c) of this section, each of the following persons shall be required to hold a casino license prior to the operation of a casino in the hotel with respect to which the casino license has been applied for:
(1) Any person who either owns an approved hotel building or owns or has a contract to purchase or construct a hotel which in the judgment of the Commission can become an approved hotel building within 30 months or within additional time period as the Commission may, upon a showing of good cause therefor, establish;
(2) Any person who, whether as lessor or lessee, either leases an approved hotel building or leases or has an agreement to lease a hotel which in the judgment of the Commission can become an approved hotel building within 30 months or within such additional time period as the Commission may, upon a showing of good cause therefor, establish;
(3) Any person who has a written agreement with a casino licensee or with an eligible applicant for a casino license for the complete management of a casino; and
(4) Any other person who has any control over either an approved hotel building or the land thereunder or the operation of a casino.
(c) Prior to the operation of the casino, every agreement to lease an approved hotel building or the land thereunder and every agreement for the management of the casino shall be in writing and filed with the Commission. No such agreement shall be effective unless expressly approved by the Commission. The Commission may require that any such agreement include within its terms any provision reasonably necessary to best accomplish the policies of this chapter consistent with the policies of this chapter.
(1) The Commission, may determine that any person who does not have the ability to exercise any significant control over either the approved hotel building or the operation of the casino contained therein shall not be eligible to hold or required to hold a casino license;
(2) The Commission, may determine that any owner, lessor or lessee of an approved hotel building or the land thereunder who does not own or lease the entire approved hotel building shall not be eligible to hold or required to hold a casino license;
(3) The Commission shall require that any person or persons eligible to apply for a casino license organized itself or themselves into such form or forms of business association as the Commission shall deem necessary or desirable in the circumstances to carry out the policies of this chapter;
(4) The Commission may issue separate casino license to any persons eligible to apply therefor;
(5) As to agreements to lease an approved hotel building or the land thereunder, unless it expressly and by formal vote for good cause determines otherwise, the Commission shall require that each party thereto hold either a casino license or casino service industry license and that such an agreement be for a durational term exceeding 30 years, concern 100% of the entire approved hotel building or of the land upon which same is located, and include within its terms a buy-out provision conferring upon the casino licensee-lessee who controls the operation of the approved hotel the absolute right to purchase for an expressly set forth fixed sum the entire interest of the lessor or any person associated with the lessor in the approved hotel building or the land thereunder in the event that said lessor or said person associated with the lessor is found by the Commission to be unsuitable to be associated with a casino enterprise;
(6) The Commission shall not permit an agreement for the leasing of an approved hotel building or the land thereunder to provide for the payment of an interest, percentage or share of money gambled at the casino or derived from casino gaming activity or of revenues or profits of the casino unless the party receiving payment of such interest, percentage or share is a party to the approved lease agreement; unless each party to the lease agreement holds either a casino license or casino service industry license and unless the agreement is for a durational term exceeding 30 years, concerns a significant portion of the entire approved hotel building or of the land upon which same is located, and includes within its terms a buy-out provision conforming to that described in paragraph (5) of this subsection above;
(7) As to agreements for the management of a casino, the Commission shall require that each party thereto hold a casino license, that the party thereto who is to manage the casino own at least 10% of all outstanding equity securities of any casino licensee or of any eligible applicant for a casino license if the said licensee or applicant is a corporation and the ownership of an equivalent interest in any casino licensee or in any eligible applicant for a casino license if same is not a corporation, and that such an agreement be for the complete management of the casino, provide for the sole and unrestricted power to direct the casino operations of the casino which is the subject of the agreement, and be for such a durational term as to assure reasonable continuity, stability and independence in the management of the casino;
(8) The Commission may permit an agreement for the management of a casino to provide for the payment to the managing party of an interest, percentage or share of money gambled at the casino or derived from casino gaming activity or of revenues or profits of the casino;
(9) The Commission may permit an agreement between a casino licensee and a casino service industry pursuant to the provisions of subsection (a) of section 445 of this title for the conduct of casino simulcasting in a simulcasting facility to provide for the payment to the casino service industry of an interest, percentage or share of the money derived from the casino licensee's share of proceeds from simulcast wagering activity; and
(10) As to agreements to lease an approved hotel building or the land thereunder, agreements to jointly own an approved hotel building or the land thereunder and agreements for the management of a casino or for the conduct of casino simulcasting in a simulcasting facility, the Commission shall require that each party thereto shall be jointly and severally liable for all acts, omissions and violations of this chapter by any party thereto regardless of actual knowledge of such act, omission or violation and notwithstanding any provision in such agreement to the contrary.
(d)
(1) The holder of a valid horse racing license granted by the Virgin Islands Horse Racing Commission or the Government under chapter 11 of this title and a lease-franchise agreement under section 209 of this title may be issued a casino license to operate a casino at the horse racetrack in St. Croix and the horse racetrack on St. Thomas under the conditions prescribed in this chapter; but gaming at the horse racetrack casino in St. Croix and the horse racetrack casino in St. Thomas is limited to only slot machines operated by an entity with a valid Casino license.
(2)
(A) The holder of a Casino License may be issued a license to operate a casino at the horse racetrack in St. Croix and the horse racetrack in St. Thomas under the conditions prescribed in this chapter, if the Casino Licensee has entered into a lease, management agreement, or other similar agreement with the holder of a Lease-Franchise Agreement under section 209 of this title for the horse racetrack in St. Croix and the horse racetrack in St. Thomas.
(B) No Casino License may be issued to operate slot machines at the horse racetrack in St. Croix and the horse racetrack in St. Thomas unless a Lease Franchise Agreement under section 209 of this title is in effect for the horse racetrack in St. Croix and the horse racetrack in St. Thomas.
(e) No corporation shall be eligible to apply for a casino license unless:
(1) The corporation shall be incorporated in the United States Virgin Islands, although such corporation may be a wholly or partially owned subsidiary of a corporation which is organized pursuant to the laws of a state of the United States or of a foreign country;
(2) The corporation shall maintain an office of the corporation in the premises licensed or to be licensed;
(3) The corporation shall comply with all the requirements of the laws of the Virgin Islands pertaining to corporations;
(4) The corporation shall maintain a ledger in the principal office of the corporation in the Virgin Islands which shall at all times reflect the current ownership of every class of security issued by the corporation and shall be available for inspection by the Commission or upon referral by the Commission, the Division and authorized agents of the Commission and the Division at all reasonable times without notice;
(5) The corporation shall maintain all operating accounts required by the Commission in a bank in the Virgin Islands;
(6) The corporation shall include among the purposes stated in its certificate of incorporation the conduct of casino gaming and provide that the certificate of incorporation includes all provisions required by this chapter;
(7) The corporation, if it is not a publicly traded corporation, shall file with the Commission such adopted corporate charter provisions as may be necessary to establish the right of prior approval by the Commission with regard to transfers of securities, shares, and other interests in the applicant corporation; and, if it is a publicly traded corporation, provide in its corporate charter that any securities of such corporation are held subject to the condition that if a holder thereof is found to be disqualified by the Commission pursuant to the provisions of this chapter, such holder shall dispose of his interest in the corporation; provided, however, that, notwithstanding the provisions of Title 11A, Article 8, Virgin Islands Code, nothing herein shall be deemed to require that any security of such corporation bear any legend to this effect;
(8) The corporation, if it is not a publicly traded corporation, shall establish to the satisfaction of the Commission that appropriate charter provisions create the absolute right of such non-publicly traded corporations and companies to repurchase at the market price or the purchase price, whichever is the lesser, any security, share or other interest in the corporation in the event that the Commission disapproves a transfer in accordance with the provisions of this chapter;
(9) Any publicly traded holding, intermediary, or subsidiary company of the corporation, whether the corporation is publicly traded or not, shall contain in its corporate charter the same provisions required under paragraph (7) of this subsection for a publicly traded corporation to be eligible to apply for a casino license; and
(10) Any non-publicly traded holding, intermediary or subsidiary company of the corporation, whether the corporation is publicly traded or not, shall establish to the satisfaction of the Commission that its charter provisions are the same as those required under paragraph (8) of this subsection for a non-publicly traded corporation to be eligible to apply for a casino license. The provisions of this subsection shall apply with the same force and effect with regard to casino license applicants and casino licensees which have a legal existence that is other than corporate to the extent which is appropriate.
(f) No person shall be issued or be the holder of more than two casino licenses. For the purpose of this subsection a person shall be considered the holder of a casino license if such license is issued to such person or if such license is held by any holding, intermediary or subsidiary company thereof, or by any officer, director, casino key employee or principal employee of such person, or of any holding, intermediary or subsidiary company thereof.