On May 27, Suffolk County Regional Off-Track Betting Corp. announced it had completed a $120 million purchase of Jake’s 58 casino and hotel in Islandia. According to Newsday, it’s a new beginning for the once bankrupt betting company.
OTB bought the 228-room hotel and video-lottery parlor from Delaware North. The acquisition is expected to save Suffolk OTB about $13 million a year in rental and management fees paid to Delaware North, which had held a 50-year contract to manage the casino for OTB.
In a statement, Suffolk OTB President and CEO Jim LaCarrubba said, “Owning and managing Jake’s 58 will allow Suffolk OTB both in the short term and the long term to deliver to our beneficiaries in the state and county. We are grateful to Delaware North for partnering with us to make Jake’s 58 such a success and for ensuring a smooth transition.”
Some Suffolk County lawmakers expressed their approval of the purchase, saying Jake’s 58 has been one of the most successful gaming halls in New York State since it opened in 2017. “They’re doing better than anyone else in the state,” said Presiding Officer Rob Calarco. “I’m not concerned about their ability to pay back the loan.”
Others weren’t as enthusiastic. Suffolk County Executive Steve Bellone called the deal “outrageous” and said he was foiled in his attempt to delay the deal pending an independent review of the terms.
“This is not Monopoly money they are playing with,” Bellone said in a statement. “This money belongs to the taxpayers of Suffolk County.”
A lawsuit filed by casino opponents including Islandia and Ronkonkoma residents is still to be heard by a federal appeals court judge.
