Jake’s 58 $210M Expansion to Eradicate Islandia Property Taxes
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Posted on: April 15, 2024, 10:21h.
Last updated on: April 15, 2024, 10:24h.
Jake’s 58 will soon break ground on the Long Island casino’s $210 million project that will double the number of video lottery terminals (VLTs) to 2,000. Once complete and the slot-like machines are operational, local officials say residents will no longer need to pay Islandia Village property taxes.
Suffolk Regional Off-Track Betting Corporation (Suffolk OTB) last summer announced its largest expansion of the Long Island casino since it opened in May 2017. Along with doubling the number of VLT positions, the $210 million blueprint includes renovating all 210 hotel guestrooms. The project will also bring several new restaurants and bars to the property, an indoor swimming pool, a multilevel parking lot, and a sound barrier to reduce noise in an adjacent neighborhood.
Those homeowners will also soon benefit from the project through reduced taxes. The Village of Islandia plans to eliminate property taxes after the additional casino floor space is up and running. That will save homeowners an average of $400 to $500 a year, Newsday reported.
Mayor [Allan] Dorman and the Village Board negotiated an extraordinary deal on behalf of their constituents,” said Suffolk OTB President Phil Boyle, who was formerly a New York state senator and assemblymember. “As the casino expands and revenue increases, Islandia residents will continue to benefit.”
The property tax elimination stems from Islandia negotiating an increased local share payment from Suffolk OTB when the business proposed plans to expand the casino’s footprint. Suffolk committed to directing $4.25 million to Islandia each year, up 89% from the current $2.25 million annual payment.
Islandia is a 2.2-square-mile village with about 3,500 residents.
Forthcoming Competition
Jake’s 58 is one of 11 VLT casinos that offer gaming machines on behalf of the state. The casinos retain about 45.7% of the gross gaming revenue won by the terminals and electronic versions of table games, while 44.3% goes to state education, and the remaining 10% is reserved for gaming vendors and the administration of the video lottery central system.
Jake’s is located on Long Island about 30 miles east of where Las Vegas Sands hopes to build an integrated resort casino with Las Vegas-style slot machines, live dealer table games, and sports betting. The Sands pitch at the Nassau Coliseum site is one of at least 10 developments seeking to gain one of the three downstate casino licenses the state will issue next year. The winners of the coveted concessions will each need to pay a one-time fee of $500 million.
Boyle has long said Suffolk wouldn’t bid on a downstate casino license to bring slots, dealers, and a sportsbook to Jake’s. Instead, the company is focusing on improving its product and further improving guest loyalty.
“I think wherever those casinos are located, we are going to be able to compete very well,” Boyle told the New York Post. “We have a very loyal following.”
Construction Timeline
Boyle revealed the $210 million expansion and renovation of Jake’s 58 should be completed sometime next year. With the New York Gaming Facility Location Board last month saying the downstate licensing process will likely extend into late 2025, Jake’s will begin its next chapter free of commercial casinos for at least a year but presumably longer, as construction of the integrated resorts will take many months.
During the past 12 months, Jake’s 58 reported gross gaming revenue (GGR) of about $277.3 million. Boyle projects gaming win to increase 42% in the first full year following the expansion’s completion.
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