Jake’s 58 Casino Hotel in New York To Get Major Expansion

Article by : Erik Gibbs Apr 16, 2024

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Suffolk OTB is poised to embark on a significant $210 million expansion project for its Jake’s 58 Casino Hotel. It hopes to position itself strategically ahead of competitors contending for the highly sought-after NYC casino licenses.

The forthcoming expansion marks a milestone for the casino, representing its first major development since its inauguration in 2017. Phil Boyle, CEO of Suffolk OTB, emphasized the organization’s competitive stance and expressed confidence in its ability to thrive regardless of the eventual location of the licensed casinos.

Boyle outlined plans to essentially double the casino’s current size, emphasizing its unique status as one of only two government-owned casinos in the US. Anticipated enhancements include a potential revenue surge of up to 42%, the doubling of gaming terminals to 2,000 and a substantial increase in parking capacity from 600 spaces to nearly 2,000.

Boyle also highlighted the distinctive allocation of profits, noting that the majority of earnings are directed towards the New York State Education Department and Suffolk County on Long Island.

Regarding the timeline for new casino licenses in the New York City area, state regulators recently announced that decisions would not be made until 2025. Consequently, the earliest possibility for a gaming facility to commence operations in the metro area would be around 2026.

Boyle expressed optimism about completing the expansion of Jake 58 before competitors initiate construction, aiming for a ribbon-cutting ceremony ahead of schedule. He underscored the casino’s strong and loyal patronage as a key factor in its ongoing success.

Prospective bidders for the New York City licenses include prominent entities such as Las Vegas Sands Corp., Wynn Resorts Ltd. and financier Steve Cohen, who has collaborated with Hard Rock International.

According to New York’s casino legislation, successful license recipients will be required to remit a one-time fee of $500 million to the state. Bidders are anticipated to engage in competitive bids, with tax contribution forming a significant factor in the selection process.

However, the timeline for the arrival of any new casino or casinos is still uncertain. New York is grappling with resistance to the expansion, as well as environmental concerns and other questions that have to be answered before it will begin to review applications.