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Government settles suit over gambling expansion

Monday, March 24, 2003 | 9:37 a.m.

CHARLOTTE AMALIE, U.S. Virgin Islands -- The government has reached a settlement with a gaming company about installing video lottery terminals throughout the U.S. Virgin Islands, but both sides refused to reveal details, the attorney general said Sunday.

For the last few months, the government had blocked Southland Gaming Corp.'s efforts to install the terminals in St. Thomas and St. Croix, saying the machines jeopardized revenues at legitimate and regulated casinos.

The two sides settled Thursday, after Southland had filed suit against the government for breach of a 1998 gaming contract allowing for 1,000 machines in the U.S. Caribbean territory.

Authorities said they had hesitated on allowing more machines to be installed because of a Virgin Islands law saying casinos can only operate in St. Croix.

There are no laws to regulate gambling on other islands in the territory, which include St. Thomas and St. John.

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