Long Island’s only casino broke ground Monday on a $210 million expansion, a move the gambling parlor hopes will allow it to stay competitive amid the impending arrival of nearby competition.
Jake’s 58 Casino Hotel, which Suffolk Off-Track Betting operates, will undergo its first major renovation since it opened in 2017.
According to the company, renovation plans call for a new spa, restaurants, a concert stage, meeting and convention space as well as refurbished hotel rooms. Jake’s 58 will also be doubling the amount of video lottery terminals on the casino floor and adding almost 1,400 parking spaces.
Jake’s 58 set to double in size with 1,000 more games on the way
Last summer, Suffolk OTB announced its intentions for a 110,000-square-foot expansion of Jake’s 58, noting that work could be done by 2025.
Suffolk OTB CEO Phil Boyle told the New York Post that the $210 million project would “basically double the size of the current casino.”
During Monday’s groundbreaking ceremonies, Boyle explained:
“Many times, people come here and there’s not enough games, almost all of them are taken, their favorite game is taken so they’re waiting so when we put 1,000 more games in, that will solve a lot of these issues.”
Suffolk OTB anticipates the expansion project will increase annual revenue by 42%. The VLT facility generated about $288 million in revenue last year, according to state gambling regulators.
Downstate New York casinos are coming … eventually
The extra revenue will be helpful as Jake’s and other downstate New York racinos and VLT facilities face stiff incoming competition from three fully integrated casino resorts.
New York gaming regulators have begun the process of awarding three class III gaming licenses for operators in the downstate region, with those licenses potentially opening the door to offer online casinos in NY once lawmakers legalize iGaming. Recently, regulators indicated that licenses would not be awarded until, at least, 2025.
Jake’s 58 is not among the 11 likely applicants for the three available downstate NY casino licenses. Only one applicant, Las Vegas Sands Corp., is considering Long Island as a possible home for a new casino project. The LV Sands project is facing stiff local resistance from nearby Hofstra University and community groups.
Tax relief is always welcome, especially in NY
New York Newsday is reporting that the Village of Islandia, where Jake’s 58 is located, will eliminate property taxes once the casino expansion is complete, saving village residents hundreds of dollars per year.
According to the local newspaper, Mayor Allan Dorman said a 2021 taxpayer relief program with Suffolk OTB will add about $2 million per year in taxes. Residents will reportedly save about $400 to $500 on their property tax bills until the agreement ends in 2041.
“We are taxpayer friendly,” Boyle said Monday.
“We are a government-owned entity so our profits go to the schools, the New York State Education Department and also Suffolk County, our host county.”
