The US 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 US 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 website, 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.

- AP