Jake's $210M 58th expansion aims to eliminate property taxes in Islandia Village
Jake's 58's Long Island casino will soon break ground on a $210 million project that will double the number of video lottery terminals (VLTs) to 2,000. Once the slot machines are completed and operational, residents will no longer have to pay Islandia Village property taxes, according to local officials.
Suffolk OTB announced last summer its largest expansion of the Long Island casino since it opened in May 2017. In addition to doubling the number of VLT locations, the $210 million plan includes the renovation of all 210 hotel rooms. The project will also include several new restaurants and bars, an indoor swimming pool, a multi-storey car park and a noise barrier to reduce noise from neighboring neighbourhoods.
These homeowners will also soon benefit from the project through tax breaks. The Village of Islandia plans to eliminate property taxes once additional casino space becomes operational. According to Newsday, this can save homeowners an average of $400 to $500 per year.
Mayor [Allen] Dorman and the Village Council negotiated an extraordinary agreement on behalf of their constituents," said Suffolk OTB Chairman and former New York State Senator and Rep. Phil Boyle "Islandia residents will continue to benefit as the casino expands and revenue increases," Boyle said. "
The elimination of the property tax comes as Islandia floats plans to expand its casino and negotiates higher local equity payments with Suffolk OTB. Suffolk County has committed to transferring $4.25 million annually to Islandia, an 89% increase from the $2.25 million it currently pays annually.
Islandia is a 2.2-square-mile village with approximately 3,500 residents.
Upcoming Contests
Jake’s 58 is one of 11 VLT Casinos offering slot machines on behalf of the state. Casinos reserve approximately 45.7% of gross gaming revenue generated from their terminals and electronic versions of table games to state educational institutions, with the remaining 10% reserved to gaming operators and the Video Lottery Headquarters Management System.
Located on Long Island, about 30 miles east of Las Vegas Sands, Jake's will build an integrated resort-casino that will feature Las Vegas-style slot machines, live dealer table games and a sportsbook. The Sands at the Nassau Coliseum site is one of at least 10 developments seeking one of three in-state casino licenses the state will issue next year. Winners of the coveted franchise must each pay a one-time fee of $500 million.
Boyle has long said Suffolk would not bid for a northern casino license to bring slot machines, dealers and a sportsbook to Jack Casino. Instead, the company is focused on improving the product and further increasing guest retention.
"I think we'll be able to compete well no matter where these casinos are located," Boyle told the New York Post. “We have a very loyal following.”
Construction Schedule
Boyle announced that the $210 million expansion and renovation of Jake's 58 is expected to be completed sometime next year. Jack Casino will begin a new chapter without a commercial casino for at least a year, but likely longer, following the New York Gaming Facilities Site Commission's announcement last month that the state's licensing process is expected to be extended until the end of 2025. Construction of the integrated casino resort will take several months.
Over the last 12 months, Jake's 58 reported gross gaming revenue (GGR) of approximately $277.3 million. Boyle expects gaming profits to rise 42% in the first full year after the expansion is complete.
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Source: www.casino.org
