Lawmakers on the Government Operations, Veterans Affairs, and Consumer Protection Committee received sharp updates on the rise of illegal taxi operators and the ongoing fallout from a ransomware attack on the Virgin Islands Lottery during a hearing Thursday.
Melissa Smith, acting executive director of the Virgin Islands Taxicab Commission, told senators that unlicensed taxi activity has become increasingly visible at airports, hotels, restaurants, and shopping centers across the territory, posing safety risks for both residents and tourists. “Vehicles for hire without an authorized taxi license and badge violate local law,” Smith said, emphasizing that illegal operators often lack insurance, inspections, and background checks.
Legitimate taxi drivers, she added, are suffering financially because unregulated drivers are undercutting prices without bearing the same regulatory costs. This competition has already caused tension on the ground and could escalate. Smith called for increased enforcement, partnerships with law enforcement, and public education. “There must be formal agreements between agencies, stronger surveillance, and modernized systems,” she said.
According to Smith, 1,923 medallions have been issued territory-wide — 1,280 in St. Thomas, 565 in St. Croix, and 178 in St. John — yet only about 650 have renewed their business licenses. The agency remains understaffed, has issued only seven citations, and has held no hearings. Smith also recommended offering training for taxi operators through UVICELL and increasing the agency’s budgetary ceiling to expand oversight.
Also testifying was Virgin Islands Lottery Executive Director Raymond Williams, who described a widespread ransomware attack that shut down operations in March and demanded a $1 million ransom. The encrypted breach crippled systems territory-wide, forcing the Lottery to manually reenter data from more than a year’s worth of drawings and payments.
Williams said the agency is still recovering. “This isn’t just luck — it is about our legacy,” he said. “Every dollar spent supports local initiatives, creates jobs, funds education and youth programs, and helps drive economic growth.”
Staff are still working to rebuild and sanitize affected systems. Critical positions, including IT director, marketing director, and chief enforcement officer, remain vacant.
Sen. Avery Lewis, committee chair, called on residents to support the territory’s institutions. “The VI Lottery is ours — created by us, ran for us, and designed to give back to the very place we call home,” he said.
Senators present included Avery L. Lewis, Novelle E. Francis Jr., Ray Fonseca, Alma Francis Heyliger, Kenneth L. Gittens, Franklin D. Johnson, Carla J. Joseph, and non-committee member Kurt Vialet.