- Jake’s 58 Casino Hotel is ready to begin a $200 million expansion that will double its number of VLT games to 2,000.
- Owner Suffolk OTB is awaiting Gov. Kathy Hochul to sign the bill that would authorize its expansion.
- New York is also set to issue three downstate casino licenses in 2023.
Jake’s 58 Casino Hotel in Long island says that it will push through with a planned $200 million expansion if the proposal is signed off by Gov. Kathy Hochul.
Jake’s 58 Casino Hotel on Long Island Set to Begin $200M Expansion… https://t.co/tgFjM0Z1yo pic.twitter.com/5gQAHhkSg1
— EMPIRE REPORT (@EMPIREREPORTNY) December 27, 2022
Casino owner Suffolk OTB partnered with New York-based Delaware North to transform a former Marriott Hotel in Islandia into a VLT facility after the 2013 New York VLT bill was signed into law. Now known as Jake’s 58 Casino Hotel nearly a decade later, it says it is ready to go to the next level and expand.
Jake 58’s Wants to Double its Gaming Machines
Under the expansion, Suffolk OTB wants to add roughly 1,000 gaming machines to Jake’s 58, bringing its total number to 2,000. The casino opened in 2017 with 275 video lottery terminals and added 725 more within three months of its launch. The $200 million budget also seeks to add new restaurants, a VIP gaming lounge, and a structured parking lot.
The renovation also includes the upgrade of the property’s 200 rooms and the construction of a sports bar where the bistro is currently at. Sports betting will then be available and according to Suffolk OTB, they will be partnering with a “large mobile sports betting organization” which the company says it is not yet at liberty to disclose.
According to Suffolk OTB, the expansion will bring in hundreds of millions of dollars to New York schools over the years, in addition to tens of millions of dollars to Suffolk County. Jobs would also be created by the expansion, both temporary construction jobs and permanent employment in the new facility once construction is completed.
Assembly Bill 2210/Senate Bill 7685
Last June, the New York legislature passed Assembly Bill 2210/Senate Bill 7685 which would raise the cap on VLT machines from 1,000 to 2,000. Although that bill was passed nearly six months ago, it only reached Gov. Kathy Hochul’s office last December 16th. That means that the governor has until 12:01 EST on Saturday, January 30 to sign the legislation.
The reason why the bill stays longer with Gov. Hochul’s office is that the legislation was forwarded by lawmakers after the state’s legislative session has concluded. Had they transmitted the bill when the legislature was still in session, the governor would have been given only 10 days to act on the bill.
Another feature of a bill sent after the session is that if it is unacted by the Governor after the prescription period, it is essentially a “pocket veto” by the state’s chief lawmaker. On the other hand, the governor’s inaction on a bill during the legislative session allows the bill to become law.
But although this bill will take a longer route, Gov. Hochul is expected to sign it in early January to coincide with the state formally moving forward with its decision to end the exclusivity of New York upstate casinos by issuing three downstate gambling licenses.
New York’s 2023 Gaming Expansion
The state’s 2013 VLT bill also had a provision that allowed the legalization of casinos with Las Vegas-style slot machines and table games. That component of the bill only provided for the establishment of commercial casinos in upstate New York. However, it also contained a provision that limited that exclusivity to 10 years, a period that ends in 2023.
Last April, the New York legislature added a language to the state budget that authorized the issuance of three downstate Las Vegas-style casino licenses in 2023. In November, the state began appointing members of the Gaming Facility Board which would among others, recommend casino applications to the New York Gaming Commission.
To date, several industry giants have thrown their hats in the arena, including Caesars which is plotting a Time Square casino, and Wynn Resorts which is eyeing a Hudson Yards casino. New York Mets owner Steve Cohen is also bidding to bring a casino near CitiField while Thor Equities has brought three partners to apply for a Coney Island casino.
The above applications are in addition to the two existing casinos in the state – Resort World Aqueduct in Queens and MGM Empire City Casino in Yonkers, which are expected to have the inside track on two of the three downstate casino licenses available.
