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Paes rok Y Mi pn Pa MEE i, a i — ite. — ee Re, a N VIRGIN ISLANDS CASINO CONTROL COMMISSION “Y 2024 January 31, 2025 VICES FISCAL YEAR 2024 ANNUAL REPORT TABLE OF CONTENTS MISSION STATEMENT. .........ccccscsessosescserssrcessresarencnnssscasessesserseres wl VICCC COMMISSIONERG...........sssssesssscsscarcstscescrsesnrescsresssnersesnes peseesst VICCTC STAEFP.......ccssssssssvsserscsscansssasascasscascssscceseneseoncsnscnsensenaceenens wed LETTER TO THE GOVERNOR........cccssccssssscssvessnsesssess wed LETTER TO THE SENATE PRESIDENT ...........ccccsccscssssosesceserccosscesersscsensersenssasenasensecescassenensscereneeoess 5 INTRODUCTION ........:sccscsssrsrsrssssessesssnssessacesceacsceseeseeenrsorsesseseeenenss +6 FISCAL YEAR 2024 REVENUES ..........ssccscsccsccesoresorsessess sssenccacaseccnscanceasesceccseccecsesesencenscssscersassassassonsas 6 BY REVENUE SOURCES ..u..... cece ssceseceneneeensesseesscsascssessansesssseeessesseeseesecesesenaeseseensesnecsasenseneansenaenens 6 FISCAL YEAR 2024 STATEMENT OF NET POSITION .......ceecsccsescsesseeeeseeeeessesenseeessenaereseeensarens 7 STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION.........ceseeereeees 9 AN ASSESSMENT OF THE COMMISSION’S FY 2024 FINANCIAL STANDING ..............:04 11 STATEMENT OF CASH FLOWS AS OF SEPTEMBER 30, 2024 u.....ccccssessceseseeessseseseteeeeeeseneersenes 12 BUDGET VS. ACTUAL REPORT ...000...oecccccecccctseseeeecssecessensecaseseaseasscenseseeasaseasensenssaesassersenesees 13 CASINOS’ GROSS EARNINGS FOR A FIVE-YEAR PERIOD. .......cccssesesssssererenerenscenecesseneeaseenes 15 BANK ACCOUNTS BALANCES AS OF SEPTEMBER 30, 2024........eccssesssesessreesestsenseetessesseeens 16 FISCAL YEAR 2024 ACCOMPLISHMENTS ......0..ceccsccsecsescsecssseeseseeneceseessaseensnseaeansnessessseensnseees 16 FISCAL YEAR 2024 CHALLENGES 00.00... cccccesescessesceneeseeeesseeesensenececsesseesessaessenensenserseseneegs 17 FISCAL YEAR 2025 GOALS 0... e cc cccccseetcesenseeseneescsnenseseesesseseessceansensenenssseeneesecaueaneessasieenansesensees 17 APPENDIX I. DIVISION OF GAMING ENFORCEMENT........ 19 APPENDIX II. YOUTH PROGRAM ACCOUNT. .......cccssssssseoeees 23 APPENDIX III. VI ALLIANCE ON RESPONSIBLE GAMING ACCOUNT we 27 VICCCS FISCAL YEAR 2024 ANNUAL REPORT The Virgin Islands Casino Control Commission is statutorily mandated to develop and implement a licensing and regulatory framework that permits and promotes the stability and continuity of the gambling and gaming industry in the U.S. Virgin Islands of casinos pursuant to the Virgin Islands Casino and Resort Control Act of 1995, as amended, of internet gaming and gambling pursuant to the Virgin Islands Internet Gaming and Internet Gambling Act, as amended, and of racinos pursuant to the Virgin Islands Horse Racing Industry Assistance Acts of 2011 and 2016, as amended, by assuring the good character, honesty and integrity of all licensed operators and employees and related businesses; by protecting the gambling and gaming industry from the influence of criminal activity; and by fostering public confidence and trust in the activities of the gambling and gaming industry. T| Page VECCOCS FISCAL YEAR 2024 ANNUAL REPORT 4 oo aad 4. es Marvin L. Pickering Chairman/CEO a? >, nl ) » nat a # qa — AS A ef uj f Carolyn P. Hermon-Percell Luther F. Renee Vice-Chairman Secretary/Treasurer i cS 2|/Page VICCCS FISCAL YEAR 2024 ANNUAL REPORT Nu li G Gags liGN) Bik EARCUTIVE STAFE Linda I. Smith Executive Director Romesha Smith Executive Assistant Kelvin L. Vidale, Esq. Legal Counsel Marva M. Austrie Licensing and Compliance Officer Odingo Davila IT Support Specialist Daren O’Reilly Archive Specialist Claridilia Rodriguez de Garcia Housekeeping Attendant CASINO INSPECTORS Masai Henry Senior Casino Inspector Juan Luis, Jr. Casino Inspector II Sean Browne Casino Inspector I Roberto Blewett Casino Inspector I Karissa Daniel Casino Inspector I 3/Paqge VICCOS FISCAL YEAR 2024 ANNUAL REPORT LETTER Ptr THRE GOVERNOR January 31, 2025 Honorable Albert Bryan, Jr, Governor of the Virgin Islands of the United States Office of the Governor Government House, Charlotte Amalie St. Thomas, VI 00802 Dear Governor Bryan: The Virgin Islands Casino Control Commission is pleased to present the Annual Report as mandated by V. I. Code Ann. tit. 32, § 424 which states, in part, that “[t]he Commission shall make to the Governor and the Legislature an annual report of all revenues, expenses and disbursements, and shall include therein such recommendations for changes in this chapter as the Commission deems necessary or desirable.” As such, the Annual Report details the financial position of the Commission for the Fiscal Year Ended September 30, 2024, and our records indicate that this is the Commission’s fifth issuance of an Annual Report. Submitted to the Governor, as well as the Legislature of the Virgin Islands of the United States for the period of October Ist, 2023, through September 30th, 2024, the Annual Report is comprised of the following: Unaudited Statements of Net Position; Unaudited Statements of Revenues, Expenses and Changes in Net Position; Unaudited Cash Flow Statements; FY 2024 Budget vs. Actual Statement; and Statistical Overview to include Casinos’ Gross Earnings for a five-year period, The Annual Report concludes with the Commission’s accomplishments for the fiscal year, challenges experienced during the fiscal year and the Commission’s goals and objectives for fiscal year 2025. The Commission Members and Staff remain readily available to assist the Executive and Legislative Branches in any efforts to update or implement changes to the existing laws that govern gambling and gaming activities in the U. S. Virgin Islands. rvin L. Pickering, Commissioner *CC Chairman and CEO ft Luther F. Renee, Commissioner VICCC Secretary/Treasurer Carolyn P. Hermon-Percell, Commissioner VICCC Vice-Chair 4|Page VICCC’S FISCAL YEAR 2024 ANNUAL REPORI LETEER FO THE SENATE PRESIDEN] January 31, 2025 Honorable Milton E. Potter President, 36th Legislature of the U.S. Virgin Islands Capitol Building, Charlotte Amalie St. Thomas, VI 00804 Dear Senate President Potter: The Virgin Islands Casino Control Commission is pleased to present the Annual Report as mandated by V. I. Code Ann. tit. 32, § 424 which states, in part, that “[t}he Commission shall make to the Governor and the Legislature an annual report of all revenues, expenses and disbursements, and shall include therein such recommendations for changes in this chapter as the Commission deems necessary or desirable.” As such, the Annual Report details the financial position of the Commission for the Fiscal Year Ended September 30, 2024, and our records indicate that this is the Commission’s fifth issuance of an Annual Report. Submitted to the Governor, as well as the Legislature of the Virgin Islands of the United States for the period of October Ist, 2023, through September 30th, 2024, the Annual Report is comprised of the following: Unaudited Statements of Net Position; Unaudited Statements of Revenues, Expenses and Changes in Net Position; Unaudited Cash Flow Statements; FY 2024 Budget vs. Actual Statement; and Statistical Overview to include Casinos’ Gross Earnings for a five-year period. The Annual Report concludes with the Commission’s accomplishments for the fiscal year, challenges experienced during the fiscal year and the Commission’s goals and objectives for fiscal year 2025. The Commission Members and Staff remain readily available to assist the Executive and Legislative Branches in any efforts to update or implement changes to the existing laws that govern gambling and gaming activities in the U.S. Virgin Islands. . Pickerinz, Commissioner Carolyn P. Hermon-Percell, Commissioner VICC¢ Chairman and CEO VICCC Vice-Chair Cte Luther F. Renee, Commissioner VICCC Secretary/Treasurer §|Paqge VICCOS FISCAL YEAR 2024 ANNUAL REPORT INTRODUCTION The Virgin Islands Casino Control Commission (VICCC) was established by V.I. Code Ann. tit. 32, § 401 ef seq., in November 1995 (Act No, 6069, the Virgin Islands Casino and Resort Control Act of 1995), with subsequent amendments. The Commission is responsible for the licensing and regulation of casinos, pursuant to the aforementioned Act and the Internet Gaming and Gambling Act (Act No. 6419), and racinos, pursuant to the Virgin Islands Racing Industry Assistance Acts of 2011 and 2016 (Acts No. 7318 and 7952, respectively) and the Casino IV Establishment (Act No. 7702). The VICCC is funded through four (4) different sources: (1) The General Fund for employee salaries and fringe benefits only, (2) The Casino Control Revolving Fund pursuant to 32 VIC § 514, as amended by Act 7643 that authorized the Commission to create a separate special checking account. This account is funded by casino and casino employee license fees, fines and other fees imposed by law or through regulation by the Commission. Eighty percent of the funds must be allocated to the Commission and twenty percent to the Division of Gaming Enforcement (DGE), VI. Department of Justice, (3) The Casino Revenue Fund pursuant to 32 VIC §517 which is funded by the 12% tax on gross casino revenues. In this regard, the Commission receives 25% of these taxes, with 75% being allocated to other Departments and Agencies of the Government, and (4) The Horse Racetrack Casino Revenue Fund pursuant to 32 VIC § 901 (The Virgin Islands Horse Racing Industry Assistance Acts of 2011 and 2016 (Bill 29-0127; Act 7318 and Bill No. 31-0484; Act 7952, respectively). Taken together, these funding sources support the day-to-day functions for administrative and operational oversight of the casino industry. FISCAL YEAR 2024 REVENUES General Fund The VICCC was appropriated $1,423,800 (per Act No, 8759), in fiscal year 2024 for funded positions, to include fringe costs. The actual payroll cost was $7,341,906, inclusive of fringe costs of $396,290. The primary reason for the difference in actual spending vs budget was due ta the resignation of the Commission's Legal Counsel and the position being filled in the latter part of September 2024. Special Casino Control Revolving Account The VICCC received a total of $603,529 from casino license fees, casino employee fees, fines, and other fees imposed by law or through regulation set by the Commission. By comparison, the amount received in Fiscal Year 2023 was $204,264, an increase of $399,265, primarily due to casino license renewal fees and settlement agreements for fines assessed for violations of the Casino and Resort Control Act of 1995, as amended. | Page VICCE'S FISCAL VEAR 2024 ANNUAL REPORT Casino Revenue Fund The VICCC received a total allotment of $554,417 from the taxes collected from licensed gaming entities by the Government of the Virgin Islands. This amount represents twenty-five percent (25%) of the twelve percent tax paid into the Casino Revenue Fund for the fiscal year, pursuant to 32 VIC § 517. This is slightly below the amount of $564,402 received in the prior fiscal year. Table 1 provides an illustration of the Statement of Net Position report generated by the Commission for fiscal year 2024. Virgin Islands Casino Control Commission Statement of Net Position As of September 30, 2024 Table 1 September 30, 2024 September 30, 2023 ASSETS Current Assets Cash Petty Cash $ 300 $ 300 Total Cash 300 300 Checking/Savings Banco Popular - Commission Opr Acct 874,778 420,457 First Bank - Commission Revolving Acct 435,904 168,577 Total Checking/Savings 1,310,682 §89,034 Accounts Receivable V.A. Golden Restitution Receivable 276,801 282,932 S. Barnes Restitution Receivable 247,490 - Due from DGE 2,220 = Due from JZT Management : 3,684 Total Accounts Receivable §26,511 286,616 Other Current Assets Due from the Casino Revenue Fund 140,787 131,500 Prepaid Interisland Travel FTW 1,008 - 7|[ Page VICCOS FISCAL VE AR 2024 ANNUAL REPORT Pre-paid Inter-Island Travel 5,836 1,564 Total Other Current Assets 147,631 133,064 TOTAL ASSETS 1,985,124 $ 1,009,014 LIABILITIES Current Liabilities Accounts Payable 25,022 21,590 - Due to Department of Finance 2,442 Liability Due - CCC Youth Program 50,922 - Liability Due - DGE 28,778 14,948 Total Current Liabilities 104,722 38,980 NET POSITION Opening Balance at 10/01/2023 $ 1,166,702 $ 498,246 - 184,567 Net Position Adjustment Change in Net Position 713,700 287,221 Total Net Position 1,880,402 970,034 TOTAL NET POSITION & LIABILITIES $ 1,985,124 1,009,014 | Page VICCO'S FISCAL YEAR 2024 ANNUAL REPORT Table 2 provides an illustration of the flow of revenues generated by the Commission for fiscal year 2024. Virgin Islands Casino Control Commission Statement of Revenues, Expenses, and Changes in Net Position For the year ended September 30, 2024 Year to Date Prior Year to Date Operating Revenues September 30, 2023 Income Casino Revenue Fund 554,417 567,402 License Fees 419,322 101,352 Stipulated Settlement 84,480 - GVI Payroll Contributions 1,341,906 1,128,823 Other Income - - Other Income: FEMA Disaster 48,657 - Slot Fees 83,408 88,192 Transcript Copies 19 S Work Permit Income 16,300 14,720 Total Operating Revenues $ 2,548,509 1,900,489 Operating Expenses Advertising and Promotion 36,332 13,707 Auto Insurance 7,402 10,328 Automobile Expense 4,535 13,583 Bank Service Charges 684 5,839 Contents Insurance 9,193 - Cable Expense 1,915 1,876 Capital Outlay — Vehicle = 44,000 Capital Outlay — Equipment 13,455 17,730 Computer and Internet 9,696 22,305 Conference Fees 9,385 6,893 Credit Card Fees - 70 Dues and Subscription 13,927 7,695 Electronic Equipment 930 - Employee Recognition 5,682 2,169 Government Insurance Fund 955 969 Interest Expense - 2,296 Janitorial Services 400 400 Liability Insurance 2,320 1,902 Meals and Entertainment 9,935 3,562 Membership Dues 3,129 3,855 Merchant Fees 15,279 869 Miscellaneous Expense 854 1,070 9[ Page ViCCOCS FISCAL YEAR 2024 ANNUAL Office Furniture Office Miscellaneous Office Supplies Printing and binding Postage Professional Fees Rent Expense Repairs and Maintenance Salaries Payroll Social Security Medicare GERS Contribution Medicare, Dental and Life Ins Telephone Expense Training, Conference and Dues Transcription Services Travel Expense: Inter-Island Travel Travel Expense Uniform Utilities: Electricity Expense Utilities: Security Expense Utilities: Water Expense Total Operating Expense Change in Net Position A REPORT 384 270 1,841 4,552 12,773 13,859 96 ; 90 159 67,761 124,650 93,387 84,006 78,346 13,544 945,616 786,529 58,437 48,695 13,711 11,388 189,331 163,902 134.811 118,309 4,607 4,568 4,595 4,159 3,942 3,464 8,077 12,748 37,256 29,483 1,507 902 25,985 24,086 1,170 2,110 6,078 767 1,834,809 $ 1,613,268 713,700 $ 287,221 W/ Page VICCC'S FISCAL YEAR 2024 ANNUAL REPORT AN ASSESSMENT OF THE COMMISSION'S FY¥2024 FINANCIAL STANDING In FY 2024, revenues were classified by specific categories. Casino Revenue Fund @ License Fees BGVI Payroll Contributions Slot Fees @ Work Permit Income Government of the Virgin Islands Payroll Contributions accounted for 53% of Revenues and 73% of Expenses for FY 2024. GVI Payroll Contributions KYVE 2024 PVE 2023 Salaries Expense Gross Payroll $945,616 $ 786,529 GERS Contribution 189,331 163,902 Medical, Dentai and Life Insurance 134,811 118,309 Medicare 13,711 11,388 Social Security 58,437 48,695 Total Salaries Expense $1,341,906 $1,128,823 11) Page VICCCCS FISCAL YEAR 2024 ANNUAL REPOR] §) y FoF Table 3 provides an illustration of the flow of revenues generated by the Commission for fiscal year 2024. Virgin Islands Casino Control Commission Statement of Cash Flows As of September 30, 2024 Table 3 Operating Activities 74,107 Change in Net Position Adjustment to Reconcile Net Position to Net Cash Provided by Operations Accounts Receivable V. A. Golden Restitution Receivable 1,238 Due from DGE (1,905) Current Assets Prepaid Inter-Island Travel (2,452) Due from Casino Revenue Fund (887) Current Liabilities Accounts Payable 25,022 Liability Due DGE 28,618 Net cash used by Operating Activities 123,741 Net cash increase for the period 123,741 Cash at the Beginning of the Period 1,187,241 Cash at the End of the Period 1,310,982 2] Paqge VICES FISCAL VEAR 2024 ANNUAL REPORT Table 4 provides an illustration of the Budget vs. Actual report generated by the Commission for fiscal year 2024. Virgin Islands Casino Control Commission Budget vs. Actual Report As of September 30, 2024 Table 4 Revenues Casino Revenue Fund ) 529,000 4$ 554,4171$ (25,417) 104.80%o License Fees iS 344,900 I$ 419,3221$ (74,422) 121.58%o Work permit Income J 5,0003$ 16,300]$ (11,300 326.00% Slot Fees iS 91,8008$ 8340855 8,392 90.86%5 Other Income +] GVI Payroll Contributions [§ 1,423, 8001S 1,341, 90685 $1,894] 94.25% FEMA Reimbursement $ 48,657)$ (48.657)} Conference Room Rental 4 Forfeited Jackpot 4 Transcript Copies $ 19S (19 Stipulated Agreement $ 84,4801 (84,480) __-TotalRevenues hisze —2,394,5009$ ss. 548, 5007S (154,009 ==——s—«106,.43%) ersonnel Services Unclassified Salaries i 995,7001$ 945.6165 50,084] 94.97% Fringe Benefits ee Contr Retirement ps 202,800]$ 189,33 158 13,46 93.36% FICA 3 61,800]$ 58,437]5 3,3634 94.56% Medicare Is 14,500]$ 13,711) 7394 94.56% IHealth Insurance Premiums Is 171,900]$ 134.81 1,5 37,089] 78.42% Workers Comp. Premiums Is 1,000]$ 95555 45] 95.50% SUTA Tax Is 71,300 is 71,300) 0.00% [Uniform Allowance 3 6,0001$ 150795 4.4934 25.12% [EXPENSES SUPPLIES Office Supplies ss 16,000]$ 12,7735 3,227 79.83% JOffice Furniture 3 7,00055 384]s 6,616 5.49% fOperating Supplies FOPERATING EXPENSES Advertising and Promotion iy 80,0007$ 36,3325 43,668] 45.42% Automobile Expense 3 20,000] 4.53555 15,465] 22.68% 13 | Pages VICCOCS FISCAL YEAR 2024 ANNUAL REPORT ‘ommunication (Phone) insurance — Contents f 15,0009$ 9,193] 61.29% [insurance — Auto 11,5009$ 7,402) 4,098] 64.37% Hinsurance — Liability 3 2.1009 2,320)8 (220)} 110.48%I [Professional Fees is 150,000] 67,7615 82,239] 45.17% po & Binding fs 7,50018 9615 7,404] 1.28% ental — Machinery and Equipment | | foot = Land/Building iS 102,700] 93,38755 9,313] 90.93% epairs & Maintenance is 15,0009$ 7834655 (63,346)} 522.31% Training Expense is 25,000]$ 4.59595 20,405] 18.38% Travel Conference is 105,000]$ 37,25655 67,744) 35.48% Travel (Inter-Istand) is 15,0009 8,075 6,923] 53.85% ALL OTHER EXPENSES ank Service Charges i 7,0007$ 68455 6,3169 9.77% Expense is 2,5009$ 1.91595 585] 76.60% pe & Internet Charges - 10,0008 9.69695 304} 96.96% ‘onference Fees 40,00015 9.38518 30,615} 23.46% mployee Recognition 2,5009$ 5,6824$ (3,182 227.28% ee Services 2,000] 4005 1,600} 20.00% [Meals and Entertainment ¢ 4,000] 9,9351$ (5,935 248.38% IMerchant Fees 1,000] 15,279]$ (14,279) 1527.90% fOther Expense iS 6,000] 1,841 4,159] 30.68% sSubscriptions iS 8,0001$ 13,9278 (5,927 174.09% [Memberships is 6,000] 2,129}5 Sy 35.48% [Miscellaneous Expense $ 85415 ad = 3 1,000] 90fs 910 9.00% oftware | Transcriptions iS 10,0003$ 3,942) 6,058 39.42%) JUTILITIES [Electricity is 25,0009 25,9854 (985 103,94% Telephone i$ 6,500] 4.607§5 —t 70.88% Kecurity Expense is 1,500]$ 1,1 70,5 3301 78.00% [Water 3 3,100]$ 6,07885 (2,978) 196.06% ICAPITAL OUTLAWS Computers and Servers 3 15,0009 iS £5,000} 0.00% Kapital Outlay — Equipment | $ 14,385] Vehicle Purchase -STT Is 45,000 iS 45,000] 0.00% [Miscellaneous VICCC'S FISCAL YEAR 2024 ANNUAL REPORI Total Fiscal Year Gross Earnings for VIGL (Caravelle Casino) Fiscal Year 2020 ! $5,482,006 Fiscal Year 2021 $ 6,644,439 Fiscal Year 2022 $ 6,875,784 Fiscal Year 2023 $ 9,300,493 Fiscal Year 2024 $ 8,245,200 Total Annual Gross Earnings for DIVI Carina Bay Casino Fiscal Year 2020 $ 6,683,362 Fiscal Year 2021 $ 12,003,961 Fiscal Year 2022 $10,730,433 Fiscal Year 2023 $ 9,442,899 Fiscal Year 2024 $ 10,281,933 . “Gross revenue”, as defined by 32 VIC § 402 (36), is: “The total ofall sums, including checks received by a casino licensee pursuant to section 457 of this title, whether collected or not, actually received by a casino licensee from gaming operations, less only the total of all sums paid out as winnings to patrons and a deduction for uncollectible gaming receivables. The deduction for uncollectible gaming receivables shall not exceed the lesser of: (1) a reasonable provision for uncollectible patron checks received from gaming operations; or (2) four percent (4%) of the total of all sums including checks, whether collected or not, less than the amount paid out as winnings to patrons. Gross revenue shall not include any amount received by a casino from casino simulcasting. For the purpose of this definition, any check which is invalid and unenforceable pursuant to subsection (f) of section 457 of this title, shall be treated as cash received by the casino licensee from gaming operations.” ' Casinos were closed by Order of the Governor from March 21, 2021, to June 9, 2021 and July 10, 2021 through September 15, 2021, due to the COVID 19 giobal pandemic. 1§| Page VICCOCS FISCAL YEAR 2024 ANNUAL REPORT BANA ACCOUNTS BALANCES AS OF SEPTEMBER 30, 2024 A financial overview of the Commission’s Bank Accounts for the period of October 1, 2023, through September 30, 2024 is compiled in Table 5. Table 5 Fey 202 Commission Operating Account (BP) $420,457 $874,778 Commission Revolving Account (FB) $168,577 $435,904 Petty Cash $300 5 The three accounts listed in Table 5 had a combined total beginning balance of $589,334. At the end of FY 24 the combined total ending balance was $1,310,982. 4+ ACCOMPLISHMENTS Issued the FY 2023 Annual Report to the Governor and the Legislature as mandated by 32 VIC § 424. Submitted the Casino Control Revolving Fund Annual Report for FY 2023 to the Legislature and the V. 1. Department of Finance, pursuant to 32 VIC § 514(e). Submitted the Casino Control Revolving Fund Quarterly Reports for FY 2024 to the V.I. Department of Finance, pursuant to 32 VIC § 514(e). On-boarded Executive Director, Legal Counsel, and Licensing and Compliance Officer. Also filled two vacant Casino Inspector I positions. Received and distributed FY 2021 Unqualified Financial Audit from Bert Smith & Co. Entered a MOU with the V.I. Department of Health, Division of Behavioral Health, to provide funding for a joint program on certifying problem gambling addiction counselors in the St. Croix and St. Thomas-St. John districts. Entered into a Marketing Services Agreement with Mango Media to develop a long-term problem gambling/responsible gambling awareness campaign that will utilize traditional and social media formats targeting the demographics of 16-25 years of age and seniors. Developed and launched PlaywiseVI website to promote responsible gambling 14|)Page VICCC'S FISCAL YEAR 2024 ANNUAL REPORT Provided the third annual Ethics training to the Commissioners and staff. Completed negotiations with the V.I. Government Employees Retirement System and entered into a 5-year lease for 3005 Orange Grove, Christiansted, St. Croix VI. Entered into agreement with The Innovation Group for an iGaming Market Analysis. RY20624 CIALLENGES Continuing lack of adequate staff at the Division of Gaming Enforcement (DGE), the investigatory and enforcement arm of the Commission, to timely investigate licensure applications, resulting in a backlog and the overuse of temporary licenses to ensure that the casino industry can function efficiently and effectively. Continuing denial of budget increases for current and future staffing that hampers and will hamper the Commission’s ability to fulfill its mandates, especially for the licensing and regulating of internet gaming and gambling.. FY2028 GOALS Continuous review of the existing laws, regulations, and policies that govern the affairs of the Commission and propose amendments or make changes where necessary. Plan Summit to include the Governor, Legislature, Casino Licensees and other interested stakeholders to gain support of the amendments needed to the Internet Gaming and Gambling statutes and rules and regulations. Complete the financial audit of fiscal year 2023 with Bert Smith & Co. Continue the development of internal policies and procedures for efficient operations and management of the Commission, including the adoption of a formal accounting policy for the review and approval of all financial transactions. Provide technical training and other educational opportunities for the Commission’s staff while implementing activities designed to maintain and improve the positive workplace environment of the Commission. Continue to foster and enhance the working relationship between the Commission and the Division of Gaming Enforcement to ensure that regulatory compliance is maintained throughout the gaming industry. Fil Page VICCCOS FISCAL YEAR 2024 ANNUAL REPORT Continue to advocate for enhanced funding and staffing of the Division of Gaming Enforcement to ensure that it can timely perform its investigatory and prosecutorial roles with the Commission. Continue to advocate for increased funding for the Commission to attract and maintain qualified staff. Continue to foster stakeholders’ access and the public’s knowledge and understanding through the live viewing or delayed posting of the quarterly meetings on YouTube and upgrades to the website. Continue to encourage casino entities and other stakeholders to undertake the obligations of the gambling and gaming industry in promoting responsible gambling while working to prevent problem gambling. Ensure that the Commissioners and staff receive annual Ethics review and other educational and training opportunities pertinent to their duties and responsibilities. Continue to post the financial reports on the website in full commitment to transparency. 18| Page VICECCS FISCAL YEAR 2024 ANNUAL REPORT APPENDIX I DIVISION OF GAMING ENFORCEMENT Working in unison with the Casino Control Commission, the Division of Gaming Enforcement (DGE), within the V.I. Department of Justice, investigates, enforces, and prosecutes matters within the jurisdiction of the Commission. Twenty percent (20%) of the funds collected in the Commission’s Revolving Account is allocated to DGE for operating expenses. Table 6 provides an illustration of the Statement of Net Position generated by the DGE for fiscal year 2024. Division of Gaming Enforcement Statement of Net Position As of September 30, 2024 Table 6 September 30, 2024 September 30, 2023 ASSETS Checking/Savings First Bank — DGE Revolving Acct $ 385,490 267,628 Total Checking/Savings 385,490 267,628 Accounts Receivable Due from VICCC 28,778 14,948 Total Accounts Receivable 28,778 14,948 Other Current Assets Other Receivable 2,475 Total Other Current Assets 2,475 - TOTAL ASSETS $ 416,743 282,576 LIABILITIES Accounts Payable Accounts Payable 45 . Total Accounts Payable 45 - WwiPage VICCC'S FISCAL YEAR 2024 ANNUAL REPORT Current Liabilities Inv Fees payable — Treasure Bay, LLC 5,000 5,000 Inv Fees payable — Gaming Lab Int’! 2,045 2,045 Inv Fees payable — Treasure Bay VI 14,272 14,272 Inv Fees payable — Grapetree Shores 7,177 7178 Inv Fees payable — Limestar 4,000 4,000 Inv Fees payable — Aristocrat 5,509 5,509 Inv Fees payable— BMM N. America 211 211 Inv Fees payable — Divi Carina Bay 4,864 4,864 Inv Fees payable — Interblock USA 2,443 1,367 Inv Fees payable -LNW Gaming 1,600 1,600 Inv Fees payable — AGS, LLC 3,650 4,587 Inv Fees payable — Konami - 4,200 Inv Fees payable — VIGL 1,596 4,825 Inv Fees payable — IGT - (85) Audit Fees payable — VIGL 13,638 ; Audit Fees payable — Divi 12,338 - Liability Due — VICCC 2,220 a Total Current Liabilities 80,608 59,573 NET POSITION Opening Balance at 10/1/2023 $ 223,003 $ 211,583 Net Position Adjustment - 120 Change in Net Position 113,132 11,300 Total Net Position 336,135 223,003 TOTAL NET POSITION & LIABILITIES $ 416,743 $ 282,576 20 |Paqge VICCC'S FISCAL YEAR 2024 ANNUAL REPORT PEATE ME NTIO GRE VENUESHESTENSESAN OS MUGE SI NL RUROS IONE Table 7 provides an illustration of the flow of revenues generated by the DGE for fiscal year 2024. Division of Gaming Enforcement Statement of Revenues, Expenses, and Changes in Net Position For the year ended September 30, 2024 Table 7 Year to date Prior Year to date September 30, 2023 Operating Revenues Income License Fees 104,951 25,338 Slot Fees 20,852 22,048 Stipulated Settlement 21,120 Work Permit Income 3,955 3,680 Total Operating Revenues 150,878 51,066 Operating Expenses Automobile Expense 3,418 3,092 Bank Service Charges 30 Dues and Subscription 275 969 Meals and Entertainment 331 230 Miscellaneous 50 300 Office Misc 401 6,300 - Office Furniture 2,389 Office Supplies 2,906 1,346 Professional Fees 234 529 Rent Expense 1,664 3,296 Repairs and Maintenance - 190 - - Subpoena Fees Training, Conference and Dues 4,299 6,467 21,779 17,017 Travel Expense Total Operating Expense 37,746 39,766 Change in Net Position 113,132 11,300 21|/Poaqge VICECS FISCAL YEAR 2024 ANNUAL REPORI Table 8 provides an illustration of the Statement of Cash Flows generated by the DGE for fiscal year 2024. Division of Gaming Enforcement Statement of Cash Flows October 1, 2023, through September 30, 2024 Table & Operating Activities Change in Net Position hy (5,170) Adjustment to Reconcile Net Position to Net Cash Provided by Operations: Accounts Receivable Due from VICCC (28,618) Audit Fees Receivable — Divi 16,200 Other Receivable (2,475) Current Liabilities Accounts Payable 45 Audit Fees Payable — Divi 12,338 Liability Due VICCC 1,905 Net cash used by Operating Activities (5,775) Net cash increase for the period $ (5,775) Cash at the Beginning of the Period $ 391,265 Cash at the End of the Period $ 385,490 A financial overview of the DGE’s Revolving Account for the period of October 1, 2023, through September 30, 2024, is compiled in Table 9. Table 9 Beginning Ending Balance Accounts Balance September 30, 2024 October 1, 2023 Commission/DGE Revolving Account 22(/Paqe VICCCS FISCAL YEAR 2024 ANNUAL REPORT CCC-YOUTH PROGRAM ACCOUNT Prior to the enactment of Act No. 8577 (Bill No. 34-0224) in April of 2022, ten percent (10%) of taxes collected from licensed gaming entities by the Government of the Virgin Islands was earmarked to youth related programs. The following training programs were subsidized by the Commnission, in accordance with 32 VIC § 518: 1. Financial assistance to help casino employees obtain their G.E.D. and further their education, to include but not limited to college education, 2. Financial assistance for casino employees to obtain certification in the field of Hotel/Hospitality Management, 3. Fifty percent (50%) of the budgetary needs of the Jobs for America’s Graduates Virgin Islands program, and 4, Make available to the casino licensee half the cost of each employee participating in the G.E.D. or Hotel/Hospitality programs. Act No. 8577 (Bill No. 34-0224) amended 32 VIC § 517 (c), to eliminate the allocation for this program, 23 |Page VICECOS FISCAL VEAR 2024 ANNUAL REPORE SECU OP ULTERIOR LEAT IIE BE 8 8 a Table 10 provides an illustration of the Statement of Net Position generated by the Youth Programs Account for fiscal year 2024. CCC = Youth Programs Account Statement of Net Position — — As of September 30, 2024 Table 10 September 30, 2024 September 30, 2023 ASSETS Checking/Savings Banco Popular — Youth Fund Saving Acct $ 385,541 385,541 Total Checking/Savings Other Current Assets Due from Casino Revenue fund 100 Total Current Assets 100 TOTAL ASSETS 100 385,541 LIABILITIES Current Liabilities Total Current Liabilities NET POSITION Opening Balance at 10/1/2023 $ 385,641 384,991 Change in Net Position (385,541) 550 Total Net Position 100 385,541 TOTAL NET POSITION & LIABILITIES $ 100 385,541 Z4|[ Page VICCC'S FISCAL YEAR 2024 ANNUAL REPORT [SEAMEMIE (CRON RESBNMES ES TE CErSa AND GUANGES IW /NEEOSIRION I | Table 11 provides an illustration of the flow of revenues generated by the Youth Programs Account for fiscal year 2024. CCC = Youth Programs Account Statement of Revenues, Expenses and Changes in Net Position For the year ended September 30, 2024 Table LI Year to date Prior Year to date September 30, 2023 Operating Revenues Income Casino Revenue Fund Interest Income 416 550 Total Operating Revenues 416 550 Operating Expenses = Casino Hospitality Training Program VI Department of Labor Youth Program 385,957 Total Operating Expense 385,957 Change in Net Position (385,541) 550 a6|FPage VICCO'S FISCAL YEAR 2024 ANNUAL REPORT (SEREERE SGFiGASCLON Sta er ieee reais Table 12 provides an illustration of the Statement of Cash Flows generated by the Youth Programs Account for fiscal year 2024. CCC — Youth Programs Account Statement of Cash Flows September 30, 2024 Table 42 Operating Activities Net Income $ -385,541 Net Cash Provided by Operation Activities: -385,541 Net Cash Increase for the period -385,541 Cash at the Beginning of the Period — 385,541 Cash at the End of the Period 0.00 EAC CSTE LAN CES UOT SERTEN DER cos Menon en eae A financial overview of the Commission’s Youth Program Account for the period of October 1, 2023, through September 30, 2024, is compiled in Table 13. Table 13 Beginning Balance Ending Balance Accounts October 1, 2023 — BSc CMOS Laos 2OCg a F Ato] CCC’s Youth Program Account | $345,541 | 3 -0- 24|Page VICCC'S FISCAL VEAR 2024 ANNUAL REPORT APPENDIX TU VI ALLIANCE ON RESPONSIBLE GAMING This account is the depository for the one percent (1%) of the revenues from the Casino Revenue Fund, received by the Commission, for programs to treat and prevent gambling addiction, as mandated by Virgin Islands Code Ann. tit. 32, § 517(c). Table 14 provides an illustration of the Statement of Net Position report generated by the VI Alliance on Responsible Gaming for fiscal year 2024. VI Alliance on Responsible Gaming Statement of Net Position As of September 30, 2024 Table 14 September 30, 2024 September 30, 2023 ASSETS (Current Assets Checking/Savings First Bank Checking Account $ 186,617 $ 191,263 Total Checking/Savings 186,617 191,263 Other Current Assets Due from Casino Revenue Fund 5,631 5.260 Total Other Current Assets 5,631 5,260 Total Current Assets 192,248 196,523 TOTAL ASSETS 192,248 196,523 LIABILITIES & EQUITY Equity Opening Balance Equity 163,492 163,492 Unrestricted Net Assets 33,031 29,363 Net Income (4,275) 3,667 Total Equity 192,248 196,523 Total Liabilities & Equity 5 192,248 $ 196,523 27 |Page VICCC'S FISCAL YEAR 2024 ANNUAL REPORT (SEE Ee Se EE SSA CCS NET CS ON Table 15 provides an illustration of the flow of revenues report generated by the VI Alliance on Responsible Gaming for fiscal year 2024. VI Alliance on Responsible Gaming Statement of Revenues, Expenses, and Changes in Net Position October 1, 2023, through September 30, 2024 Table 15 Oct 2023 - Sep 2024 Oct 2022 — Sep 2023 Ordinary Income/Expense Income Casino Revenue Fund 22,180 22,696 Total Income 22,180 22,696 Expenses Operations Advertising 4,967 16,388 Licenses and permits 100 375 Promotional material 488 2,164 Supplies - 102 Total Operations 5,555 19,029 Contract Services Outside Contract Services 20,900 Total Contract Services 20,900 19,029 Total Expense 26,455 Net Ordinary Income (4,275) 3,667 Net Income (4,275) 3,667 26|Page VICCO'S FISCAL YEAR 2024 ANNUAL REPORI SRT ASSL is UTR La as na a Table 16 provides an i!ustration of the Statement of Cash Flows report generated by the VI Alliance on Responsible Gaming for fiscal year 2024. VI Alliance on Responsible Gaming Statement of Cash Flows October 1, 2023, through September 30, 2024 Table 16 Operating Activities Net Income 5,631 Adjustment to Reconcile Net Position to Net Cash Provided by Operations Due from Casino Revenue Fund -39 Net Cash provided by Operating Activities 5,592 Net Cash Increase for the period 5,592 Cash at the Beginning of the Period 181,025 Cash at the End of the Period 186,617 (BAREVISCOUR ETUC ess Org SEE co BER St 0 Mut seal a | A financial overview of the VI Alliance on Responsible Gaming Account for the period of October |, 2023, through September 30, 2024, is compiled in Table 17. Beginning Balance Ending Balance October 1, 2023 i_____. = Accoun ts —__—_—— ++ | (Sigytaul gS | VI Alliance on Responsible Gaming $191,263 | $186,617 23 |)Page