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The Wave of Opportunity The 36th Legislature of the United States Virgin Islands Presentation T H E Q U E S T F O R A U T O N O M Y Monday, March 23, 2026 Director Raymond Williams Topics Strategic Update & Key Considerations The Case for Autonomy Why Now? Why Autonomy? Benefits of Autonomy Call to Action for Bill 36-0233. Vision & Mission Refinement Strategic Update Shift perception from “buying a ticket” → “participating in an experience.” Transaction → Customer Experience Modern gaming systems and player-facing platforms (mobile, digital) Data analytics and real-time tracking for smarter decisions Technology as the foundation for transparency, efficiency, and growth Technology Security & Modernization “To be the leading gaming enterprise by 2030”. “The VIL responsibly generates revenue to support the people of the US Virgin Islands through secure, transparent, innovative gaming”. Diverisifying gaming options to appeal to and engage all generations. Financial Independence and Self-Sufficiency: The Virgin Islands Lottery (VIL) has operated for nearly 90 years and is likely the only government entity that generates its own revenue without any dependence on central government financial appropriations. Substantial Community Contributions: VIL pays out approximately 80% of its derived revenues to winners and through mandated transfers for pharmaceuticals for the indigent, the Educational Initiative Fund, GERS retiree annuities, veterans' services and appropriations to the General Fund. Operational Stagnation due to Procurement Constraints: A 2022 Attorney General opinion mandated that VIL follow central government procurement laws, which has created a lengthy and nearly impossible process for a competitive enterprise that requires expeditious decision-making. Proven Autonomous Models: Approximately 31 lotteries across the U.S. and Canada operate autonomously, demonstrating that standalone models provide stronger commercial performance and faster enterprise decision speed. Legislative Necessity for Autonomy: Unlike other autonomous agencies like WAPA or the Port Authority, VIL receives no federal or central government funding, yet its current enabling statute lacks the clear "independent" language required to exempt it from administrative constraints. Restoration of Integrity and Efficiency: Restoring autonomy through Bill 36-0233 would allow VIL to manage its own procurement through a structured process that promotes accountability, equity, and efficiency, ultimately generating greater revenue for the Territory. Key Considerations Why Autonomy? Finance Technology Key Components: Independent governing board with fiduciary duties Lottery-specific procurement authority Enterprise risk management framework Internal audit function reporting to board Annual independent financial and security audits Statutory KPI reporting requirements Dedicated modernization and capital reserves Clear revenue transfer formula to government Risk Management Procurement Governance Leadership VIRGIN ISLANDS LOTTERY Case for Autonomous Status Presented By: The Virgin Islands Lottery currently operates and regulates the traditional lottery and regulates the Video Lottery Terminal (VLT) system, which is operated through a third-party vendor. As such, the Lottery is fully responsible for system performance, revenue generation, and oversight of both its operations and the broader gaming environment within its jurisdiction. However, despite this level of responsibility, the Lottery remains constrained by government administrative processes that limit its ability to act with the speed and flexibility required of a revenue-generating operation. Autonomous status is intended to address this misalignment by aligning operational control with existing responsibilities, enabling more efficient execution while maintaining the oversight and governance structures already in place. Director Raymond Williams Aligning Control with Responsibility While Preserving Oversight. Aligning Control with Responsibility While Preserving Oversight. DEFINED AS AN ENTERPRISE FUND The Virgin Islands Lottery operates as an enterprise-type government entity, meaning its activities are primarily funded through the revenues it generates rather than general government appropriations. As an enterprise fund, the Lottery is expected to function in a self-sustaining manner, covering its operating costs, supporting system performance, and contributing revenue back to the government. This classification requires a higher level of operational efficiency, financial management, and responsiveness than traditional government agencies, as performance outcomes are directly tied to its ability to generate and manage revenue effectively. Key Points: Self-funded through generated revenues Not dependent on general fund appropriations Responsible for covering operating costs Expected to generate revenue for public benefit Requires business-like financial and operational management Enterprise structure requires enterprise-level execution. - Director Raymond Williams ORGANIZATIONAL CLASSIFICATION As an enterprise-type entity, the Virgin Islands Lottery operates within a revenue-driven environment where performance depends on active management, timely decision-making, and continuous system oversight. VIRGIN ISLANDS LOTTERY NATURE OF THE OPERATION A Revenue-Driven Operating Model Key Points: Requires continuous operational management Dependent on timely decision-making Revenue outcomes tied to execution Requires real-time responsiveness While the Lottery carries full responsibility for outcomes, it operates within administrative processes that limit its ability to execute efficiently. Procurement timelines, contracting requirements, and personnel constraints introduce delays that affect how quickly decisions can be implemented. These delays create a disconnect between operational needs and execution capability. VIRGIN ISLANDS LOTTERY STRUCTURAL LIMITATION Execution Is Constrained by Structure Key Points: Procurement and contracting delays Limited flexibility in execution Hiring constraints Slower implementation of decisions Autonomous status enables the Lottery to operate in alignment with its responsibilities by providing the authority needed to act in a timely and effective manner. This includes the ability to make operational decisions, allocate resources, and execute strategies without unnecessary delay. Autonomy supports a structure where decision-making authority matches the level of accountability. VIRGIN ISLANDS LOTTERY WHAT AUTONOMY ENABLES Operational Alignment Key Points: Timely operational decision-making Improved resource allocation Faster execution of strategies Alignment of authority and responsibility By aligning operational authority with responsibility, the Lottery will be better positioned to manage its systems, improve efficiency, and maximize revenue potential. Autonomy enables a more responsive and effective operation while maintaining the oversight necessary to ensure accountability. The result is a stronger, more capable Lottery operating within the same governance structure. Key Points: Improved operational efficiency Stronger performance outcomes Increased revenue potential Execution aligned with responsibility VIRGIN ISLANDS LOTTERY AUTHORITY DRIVES OUTCOMES Performance Through Alignment Effective performance requires both responsibility and the authority to act. Key pillars driving transformation: Organizational Restructuring Technology Enhancements & Security Revenue generating Public Trust & Rebranding Strategic Planning Customer Experience innovation Why Now? Focused on a modern, autonomous, revenue-generating institution for the Virgin Islands. The VI Lottery is at an inflection point. Transitioning from a traditional ticketing entity to a modern gaming enterprise. Benefits of Autonomy Shift to Commercial vs. Government Culture Compete effectively in consumer markets by building a sales-driven, customer-focused, data-informed culture. Leverage autonomy to drive performance-based management, brand innovation, and agile decision- making. Adopt a commercial orientation to boost retail productivity, expand game diversity, accelerate digital transition, and grow proceeds. Operational Agility & Speed Faster procurement, game launches, and vendor onboarding. Streamlined marketing approvals. Adaptive prize and sales strategies. Benefits of Autonomy Revenue Optimization & Reinvestment Flexibility Retain operating revenue before government transfers through enterprise budgeting authority. Reinvest directly into technology, dealer networks, responsible gaming, and retailer incentives. Prioritize strategic spending where it matters most — fixed costs, market growth, and tech modernization can't wait on appropriations cycles. Avoid the under-investment stagnation that routinely hampers line-agency lotteries. Procurement & Vendor Management Take control of vendor relationships with gaming-specific contracting expertise and flexible negotiation authority. Accelerate contract modifications and forge innovation partnerships to stay ahead of technology cycles. Avoid the vendor lock-in, system obsolescence, and cost escalation that cripple lotteries tied to slow government procurement. Call to Action Call to Action The Legislature is urged to support and pass Bill 36-0233 to amend the Virgin Islands Code, thereby restoring the Lottery’s functional autonomy and enabling it to operate as a high-performing, competitive enterprise for the benefit of the Territory. Any Questions? Thank You! T H E Q U E S T F O R A U T O N O M Y The Wave of Opportunity The 36th Legislature of the United States Virgin Islands Presentation Monday, March 23, 2026 Director Raymond Williams