USVI Host Inc., a company formed by St. Thomas businessmen Nick Pourzal and Tom Colameco and their partner Robert Schick, has received approval from the U.S. Virgin Islands’ Casino Control Commission (CCC) to set up in St. Croix a hosting facility for Internet gambling in the U.S. Virgin Islands.
The CCC unanimously approved the license after a six-month background investigation into the company, formerly known as VI Technological Initiative LLP.
“The company is now licensed and eligible to provide a server and host facilities for operators that want to provide Internet gaming,” said Shawna Richards, executive director of the CCC.
USVI Host won’t actually operate any online gambling sites. Instead, it will provide a secure Internet server and hosting facility for site operators. The company will be required to post a surety bond of $100,000 with the USVI government. The operators will also be required to pay the government a nonrefundable application fee of $4,000, good for two years, and a licensing fee of $2,000.
Colameco said online gambling is a $4 billion business that is legal in more than 60 jurisdictions, though the U.S. isn’t one of them. The USVI government would be the first jurisdiction to challenge the federal Justice Department’s legal opinion that online gambling violates the Interstate Wire Act (CB June 19).
While attending her last commission meeting, CCC member Imelda Dizon said that a bill pending in the U.S. Congress would exempt the USVI from any law banning Internet gambling. USVI Congressional Delegate Donna Christensen said she hasn’t introduced such a bill but is monitoring the situation. Some CCC members have acknowledged that the bill’s approval might be contrary to the wishes of the federal government.
Dizon said that she had voted to approve the application reluctantly and that she thinks the matter should be placed on moratorium “until it is definitely found to be legal in the U.S.” Richards said, “We’ll cross that bridge when we get to it.” CCC chairwoman Judge Eileen Petersen indicated that the whole matter could end up in federal court.
Nevada waiting on congress
The state of Nevada has passed legislation on Internet gambling but hasn’t taken steps to implement it because of the uncertainty over what Congress will do.
Meanwhile, the U.S. has complained to the World Trade Organization (WTO) about Antigua & Barbuda becoming involved in Internet gaming and conducting business in the U.S. It claims more than half of the wagers placed in the small Caribbean nation are from the U.S. (CB July 3).
“The eyes of the world are on the USVI,” said Judge Petersen. “We would be the first U.S. jurisdiction to grant a license for Internet gaming.” An optimistic Pourzal said, “We feel there is a golden opportunity for us to develop and encourage telecommunications companies to come here.”
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The CCC unanimously approved the license after a six-month background investigation into the company, formerly known as VI Technological Initiative LLP.
“The company is now licensed and eligible to provide a server and host facilities for operators that want to provide Internet gaming,” said Shawna Richards, executive director of the CCC.
USVI Host won’t actually operate any online gambling sites. Instead, it will provide a secure Internet server and hosting facility for site operators. The company will be required to post a surety bond of $100,000 with the USVI government. The operators will also be required to pay the government a nonrefundable application fee of $4,000, good for two years, and a licensing fee of $2,000.
Colameco said online gambling is a $4 billion business that is legal in more than 60 jurisdictions, though the U.S. isn’t one of them. The USVI government would be the first jurisdiction to challenge the federal Justice Department’s legal opinion that online gambling violates the Interstate Wire Act (CB June 19).
While attending her last commission meeting, CCC member Imelda Dizon said that a bill pending in the U.S. Congress would exempt the USVI from any law banning Internet gambling. USVI Congressional Delegate Donna Christensen said she hasn’t introduced such a bill but is monitoring the situation. Some CCC members have acknowledged that the bill’s approval might be contrary to the wishes of the federal government.
Dizon said that she had voted to approve the application reluctantly and that she thinks the matter should be placed on moratorium “until it is definitely found to be legal in the U.S.” Richards said, “We’ll cross that bridge when we get to it.” CCC chairwoman Judge Eileen Petersen indicated that the whole matter could end up in federal court.
Nevada waiting on congress
The state of Nevada has passed legislation on Internet gambling but hasn’t taken steps to implement it because of the uncertainty over what Congress will do.
Meanwhile, the U.S. has complained to the World Trade Organization (WTO) about Antigua & Barbuda becoming involved in Internet gaming and conducting business in the U.S. It claims more than half of the wagers placed in the small Caribbean nation are from the U.S. (CB July 3).
“The eyes of the world are on the USVI,” said Judge Petersen. “We would be the first U.S. jurisdiction to grant a license for Internet gaming.” An optimistic Pourzal said, “We feel there is a golden opportunity for us to develop and encourage telecommunications companies to come here.”
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