A who’s who of Suffolk officials turned out Monday for the groundbreaking of a new casino in Islandia, a $342 million effort that will expand the operation of Jake’s 58 and generate millions of dollars in revenue for local government.
“This is a historic day for Suffolk,” said County Executive Edward Romaine, who wielded a gold shovel to throw the first ceremonial load of dirt as a crowd numbering over a hundred cheered him on. Joining him was Phil Boyle, OTB President and CEO, who noted that the expansion is expected to generate 800 construction jobs and 150 full-time positions.
The 110,000-square-foot facility will double the casino’s video lottery terminals and electronic table games to 2,000 and revamp the 40-year-old facility’s 210 rooms at the former Marriott Hotel. A three-story garage will resolve one of the popular casino’s most pressing problems, the lack of parking for its 3,000-5,000 daily guests. The project includes expanded conference space, a high-end lounge, and room for a sports book operation.
The casino is a boon for its host, the Village of Islandia, which will eliminate village taxes thanks to the massive revenue generated by the facility. Jake’s rakes in about $23 million monthly, with a daily take of around $765,000 depending on promotions and specials, according to Boyle, who had a hand in approving the legislation that made the wagering mecca possible when he was a state senator. From that, the state Department of Education gets 45%, the New York Gaming Commission gets 10%, the New York horse industry gets 5%, and the OTB keeps 40% to run the place and pay its employees.
Once teetering on bankruptcy as the popularity of off-track betting waned, the casino has facilitated a stunning turnaround for the public benefit corporation, one of only two government entities in the nation that manage a casino. “We went from the dog house to the penthouse,” OTB Corporate Officer Tony Pancella quipped.
The financial strength of the gambling mecca is now so strong that investors offered up $3.6 billion in loans in less than two hours after the organization reached out to investors. The new casino is being built by Aurora Contractors, Long Island and Metro New York's leading Construction Management firm. Hayduk Engineering, which managed the construction of the Vietnam Veterans Memorial at Bald Hill in Farmingville, will provide design services.