Suffolk OTB on a Roll with $200 Million Expansion

The Suffolk OTB is on a roll with a $200 million expansion on tap, and a loyal client base that has made it one of the most popular entertainment destinations on Long Island.

As a public benefit corporation, the organization provides millions to the state for education aid and funding to Suffolk County. Under the guidance of former state Senator Phil Boyle, who had a hand in approving the legislation that made the wagering mecca possible, the Off Track Betting operation was pulled out of bankruptcy as interest in horse racing waned and is now on track for a new 110,000 square-foot facility at its Jake’s 58 Casino in Islandia.

Boyle spoke about plans to expand Jake’s during a sit-down last week with the South Shore Press. Operating out of the former Marriott hotel, they’re planning to double the number of video lottery terminals and electronic table games to 2,000 and revamp the 40-year-old facility’s 210 rooms. There will be expanded conference space, a high-end lounge and a three-story parking garage that will address one of the popular casino’s more pressing problems—lack of parking for its 3,000-5,000 daily guests.

Suffolk OTB head Phil Boyle discusses plans to expand the Jake’s 58 casino with guests Mary and Paul Wetterau of Franklin Square. File Photo

Boyle also envisions a sports book grill to take advantage of the explosion in sports betting as part of a venue managed and operated by OTB employees, only one of two casinos in the country that are run by a government entity. The gaming operation was previously managed under contract with Delaware North, but the Suffolk OTB bought them out and now runs its own successful venture.

Suffolk OTB head Phil Boyle goes over expansion plans with casino manager Mike Bonakdar. File Photo

According to Boyle, who’s been at the helm for six months, Jakes brings in about $23 million monthly, with a daily take at around $765,000 depending on promotions and specials. From that, the Department of Education gets 45%, the New York Gaming Commission gets 10% for the rental of the Jake’s slot machines they own, the New York horse industry gets 5%, and the OTB keeps 40% to run the place and pay its employees. The OTB still runs horse betting parlors in Hauppauge and Farmingdale, and through 50 QWIK-Betz terminals located countywide at pubs, restaurants and card shops, Boyle reported.

The OTB isn’t interested in pursuing one of the full casino licenses being offered by the state, considering the enormous $500 million licensing fee. Sites under consideration include the Nassau HUB, Times Square, Hudson Yards, and property near the Mets’ Citi Field. With its expanded operations as a Class II video terminal casino, officials said revenue to the receiving entities will substantially increase.

The OTB has won approval for the expansion from the Village of Islandia, which Boyle said has worked with casino officials to address concerns of nearby neighbors over noise and parking. The project will include a 10-foot high, 800-foot long sound wall and a tripling of parking capacity that will keep guests off adjoining streets, he said. “The mayor and the village board have been tremendous partners in this project,” Boyle noted. According to Mayor Allen M. Dorman, “Islandia’s Taxpayer Relief Agreement with Jake’s 58 saves residents over $1,100 per year on average.”

File Photo

Gamblers can choose from any number of wagers from a penny on up and can even take a crack at a progressive machine currently at $1.9 million. The electronic terminal paid out $1.4 million to a lucky guest last year whose draw lined up all the symbols necessary to win.

The OTB president and CEO took a moment to speak to guests Mary and Paul Wetterau, who traveled from Franklin Square to try their luck at Jakes. “We come about once a month and really enjoy it,” Mary said, noting that she has no interest in going to one of the full casinos. “We like it right here at Jakes,” she said as her husband went off to cash in their winnings for the day.

Boyle expects the expansion project to begin in the fall and take about 18-24 months to complete. Jake’s will remain open during the construction, and Boyle said he looks forward to the day the doors connecting the buildings swing open.