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Gov't Sued Southland Gaming

 
QueenofdeRock
(@QueenofdeRock)
Advanced Member

For once somebody owes the Gov't besides me!

http://www.cnbc.com/id/31489270

"CHARLOTTE AMALIE, U.S. Virgin Islands - The U.S. Virgin Islands sued a gaming company on Monday for allegedly failing to pay taxes on lucrative video lottery machines for nearly six years.

The cash-strapped government said in a prepared statement that that St. Thomas-based Southland Gaming of the Virgin Islands, Inc., has breached its contract by neglecting to pay gross receipt taxes in addition to percentages of net game revenues since July 2003.

It said the suit was filed in Superior Court on the U.S. territory.

The territory said the overdue taxes are estimated "to be in the range of millions of dollars." It did not disclose further specifics.

Officials at Southland Gaming did not immediately return a call seeking comment.

According to its Web site, the company has video lottery terminals in various resorts and retail locations throughout St. Thomas and St. John. Its 1998 gaming contract allowed for 1,000 machines."

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Topic starter Posted : June 22, 2009 3:57 pm
Trade
(@Trade)
Expert

I thought (if I remember correctly) that the contract the government had with them didn't specify gross receipts which was the loophole Southland used in not paying. Not sure if that's correct or not since I didn't pay that much attention at the time.

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Posted : June 22, 2009 8:44 pm
DUN
 DUN
(@DUN)
Trusted Member

From the http://www.southlandgaming.com web site:
SGVI has been authorized by the Virgin Islands Lottery as the exclusive contractor for the placement and operation of video lottery terminals and other gaming devices (i.e., slot machines) within various retail establishments, resorts, and entertainment centers throughout St. Thomas and St. John.

Wow, I just read EXCLUSIVE!
I think the mob runs/owns it.
It seems not only do they feel they are above local taxes, but they also don`t like paying out(sounds like my insurance company Marium mathes/First Bank Insurance):

Lawyer Makes 'Objection' in Slot Jackpot Dispute
23 April 2008

By John G. Brokopp

You may have read the story that hit the newswires late last month about the lawyer whose $5.15 million slot jackpot in a gaming center at a resort in the U.S. Virgin Islands was ruled the result of a machine malfunction, which disqualified him from claiming the bonanza.

The incident allegedly took place in the Ocean Club Gaming Center at the Wyndham Sugar Bay Resort and Spa on the Island of St. Thomas. The attorney's name is Alvin C. Paulson, a partner in the law firm of Becker, Paulson, Hoerner & Thompson in Belleville, Illinois.

"The gaming center wasn't very big," Paulson told me when I placed a call to him at his offices. "Perhaps 100 slot machines but no table games. It's located in the lobby of the resort. I go to a casino maybe twice a year and don't normally play slots. On our first evening there, I decided to sit down at a quarter machine and put in a twenty-dollar bill."

On one spin, according to Paulson, "the lights and sirens went off". He looked down at the machine's credit meter and Paulson said it showed he had won 20.5 million quarters (over $5 million).

"The meter started running up the credits and a big crowd began to gather, but less than a minute later an employee came over and reached around behind the machine to shut if off, claiming there had been a malfunction," Paulson said.

The manager was summoned and Paulson asked him what he was going to do. "Nothing" was the answer, confirming a malfunction had taken place.

"He offered me $100 and I told him 'no way'," Paulson said. "I said I'd settle if they picked up the cost of our stay for me and my family, but the manager refused. I don't know what I'm entitled to, or whether I'm entitled to anything. But I think I'm certainly entitled to something."

Paulson says that he still had $16.50 in credit in the machine and he didn't even get that back. He has filed a lawsuit.

"I'd like someone to prove to me it was a malfunction. I just didn't like the way I was treated. That's my biggest problem. They admitted I had won a jackpot, but only one hundred or so dollars. I found it odd that the machine was back in service the very next day, but the following day they had shut it down and roped off the area."

Rich Roberts, vice-president of communications for Wyndham Hotel Group, told me that the Ocean Club Gaming Center is operated by Southland Gaming of the Virgin Islands, which leases space for its casino operation from the resort's owner, the Sugar Bay Club and Resort Company of St. Thomas.

Wyndham operates the Wyndham Sugar Bay Resort and Spa under contract to the property owner.

"Wyndham Hotel Management Company, a subsidiary of Wyndham Hotel Group, has no business relationship with the casino or Southland Gaming," Roberts said. "Decisions regarding casino operations and winnings are made solely by Southland Gaming and the Virgin Islands Gaming Commission, which investigated Mr. Paulson's allegations."

Roberts could not comment on the specifics of the allegations in light of the fact Paulson has filed a lawsuit.

Southland Gaming of the Virgin Islands is an independently owned and operated company based in Wilmington, North Carolina.

Shaine Gaspard, vice president of Southland Gaming of the Virgin Islands, stated when I contacted him that it is company policy not to discuss specifics of ongoing litigation, but added: "Southland Gaming believes that the plaintiff's claims will be shown to be totally without merit in the litigation."

The U.S. Virgin Islands Casino Control Commission did not respond to my e-mail inquiry for information.

The moral of the story is "let the gambler beware". If something irregular does occur, be sure to document all of the specifics. Paulson, for example, could not tell me what kind of machine he was playing or how many quarters he played per spin, nor did he know the combination of reel symbols he received on the alleged jackpot spin.

CASINO NEWS: Among the 11 casinos in the state of Indiana, the denomination that generated the most coin-in during February 2008 was the 564 one-dollar units at Horseshoe Hammond with $116,513,161. The denomination that generated the most casino win was the 652 penny units at Resorts East Chicago with $9,731,514.

The flop: The coin-in on the pennies at Resorts was $80,176,944. The Shoe's dollar slots out-handled them by $36,336,217. In spite of $36-million more in coin-in, the dollar slots at Horseshoe made less money for the casino than the penny games did for Resorts.

The turn: Penny slots are great fun and very entertaining, but they come with a high price. Gamblers as a collective group win far less on them than the higher denominations. Casinos, in turn, make much more money on them because the hold percentage is so high.

The river: The next time someone asks you why low-denomination, multi-line/multi-line slot machines are taking over casino floors nationwide, you'll know the answer.

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Posted : June 23, 2009 3:33 am
Tippi
(@Tippi)
Trusted Member

Article in today's paper. Click on to view it larger.

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Posted : June 23, 2009 12:14 pm
East Ender
(@east-ender)
Expert

Tippi: Do you have an online subscription? Do you like it? I am wondering about changing from dead tree...

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Posted : June 23, 2009 1:19 pm
Tippi
(@Tippi)
Trusted Member

EE yes I do and enjoy it. I'm doing my thing to be eco friendly. Online is up usually by 4:00am. I can keep articles and research in back issues and makes it easy.

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Posted : June 23, 2009 9:37 pm
East Ender
(@east-ender)
Expert

Okay, because it is hard as heck to use the archives on the free version... Thanks for the review...

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Posted : June 23, 2009 10:26 pm
terry
(@terry)
Expert

what does it cost and how do you sign up?

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Posted : June 23, 2009 11:31 pm
dntw8up
(@dntw8up)
Trusted Member

http://paper.vidaily.com/

6 Consecutive Editions $6 USD
12 Consecutive Editions $12 USD
1 Consecutive Month $26 USD
3 Consecutive Months $70.20 USD
6 Consecutive Months $117 USD
12 Consecutive Months $202.80 USD

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Posted : June 23, 2009 11:49 pm
Tippi
(@Tippi)
Trusted Member

Well there you have it...straight from dntw8up

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Posted : June 24, 2009 11:20 am
East Ender
(@east-ender)
Expert

To go back to DUN's article. I remember that whole deal. The guy didn't know come here from sic 'em about the law. He thought he was in a casino authorized by the Casino Control people when he was in a tacky VLT parlor run by the VI Lottery people. He didn't wonder why there were no "table games?" And now that I just re-read it, I realize that the person writing the story didn't even know that it wasn't a casino... Oh, that this goes to court and they shut the whole VLT scam down!! :@)

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Posted : June 24, 2009 1:16 pm
Tippi
(@Tippi)
Trusted Member

Seems yesterday was spent discussing the contract without rules and regulations.

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Posted : June 24, 2009 1:30 pm
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