Perhaps one of the largest and most well-known local recreation sites and tourist attractors is none other than Jake’s 58 Casino and Hotel in Islandia. Jake’s is also one of just two government-owned casinos in the United States, the profits from which flow directly to the New York State Education Department for schools, Suffolk County, and the Village of Islandia.
Opening in 2017, the casino has become one of the most lucrative in the region, raking in $288 million in annual revenue, a number projected to nearly double after the two-year expansion is completed.
The $210 million expansion project will see a near doubling of casino amenities, more than triple the amount of current parking, renovations to hotel rooms, and a host of unique attractions the casino can use to boost local engagement as well as out-of-state tourism and conferencing.
The expansion comes off the heels of legislation signed in 2022 by Governor Kathy Hochul (D) allowing the casino to add more electronic games, more doubling the number of machines allowed under state law.
The project is also expected to create over 800 union jobs throughout the two-year construction period and 125 to 150 permanent jobs once the ribbon is cut.
The ground-breaking ceremony was held Monday morning in the parking lot outside the casino just off the North Service Road.
The Messenger got details of expansion from former New York State Senator and current President and CEO of Suffolk Off-Track Betting (OTB) Phil Boyle.
“One of the biggest problems we’ve had is parking,” Boyle told The Messenger. “I’ve had people tell me they’ve circled the parking lot for fifteen minutes, couldn’t find a spot, and went home. We have 600 spaces now, we’re going up to 2,000 spaces. We’re going to have a three-story parking garage off the main building and some other lots.”
Boyle also says that the number of electronic games will double from 1,000 machines to 2,000.
“We’re also building a 110,000 square foot facility on the north side of the property, we’ve already cleared ten acres for it,” Boyle says. “We’re going to have a spa, a conference area, and an ultra lounge, sort of a VIP-type of deal.”
Boyle is also interested in introducing a sportsbook to the casino, a facet that would be unique to Long Island.
“We’re also renovating all 210 existing hotel rooms,” says Boyle. “It’s a forty-year-old hotel, it needs some updating.”
Jake’s 58 is unique in that it has contracts with local governments that allow the profits to be directly reinvested into the community. The casino has a contract with the Village of Islandia that not only allows the Village to have some of its services delivered to residents tax-free, but also enjoy the long-term benefits of being an attractive community for new homeowners.
The Messenger also discussed the overall doubling of the casino with a representative of one of its prime stakeholders, Islandia Village Mayor Allan Dorman.
“Right now, Village residents don’t pay a garbage tax, they haven’t since 2010” said Dorman. “About three or four years ago, we gave residents a 50% reduction in residential taxes because of the revenue the casino has seen. With the expansion, we’re looking to get rid of the other 50%. So, if you buy a house in Islandia, you won’t pay any real estate taxes on a residential home. It could save you anywhere between $1,000 and $1,500 a year.”
Dorman says such incentives raise home values and set the Village on a good course for the future.
“If a young couple wants to buy a place, this is the place to be.”
Dorman also explained how Islandia formed the contract with OTB and what protections there are to ensure one stakeholder doesn’t hold the purse strings.
“Their profitability determines whether they open or not. If they weren’t profitable, they wouldn’t be open,” says Dorman. “We already have an agreement in our contract that OTB pays a set fee. It’s not based on good days or bad days. It’s a set fee for twenty years. Two years before the contract is over, we have to negotiate either an extension or a new deal. So, this will be here long after we’re all not here anymore.”
Majority Leader in the Suffolk County Legislature Nick Caracappa (C-Selden) also gave his thoughts to The Messenger on the groundbreaking.
“It’s a great day for Suffolk County, for the residents, and for those who like good entertainment,” said Caracappa. “We thank the Governor for signing the bill to allow this expansion. More parking, more games, more room, and a lot more revenue for the County; we can all appreciate that. To have the revenue go back toward the County, education, infrastructure, and our buildings, this is exactly what we needed at the right time.”
Boyle headlined the press conference and was joined by Suffolk County Legislators, state officials, Islandia Village Trustees, and even a representative from Governor Hochul’s office.
“We thank our New York State legislators and members of the Gaming Committee,” said Boyle. “They’re up in Albany right now, the budget is late and they’re not getting paid. So, we’ll get them loans here from Jake’s,” Boyle joked.
“Or they could try their luck!” quipped Suffolk County Executive Ed Romaine (R-Center Moriches).
Boyle thanked Governor Hochul, State legislators, as well as Islandia Mayor Dorman and Trustees.
“We’d like to thank the residents of Islandia for partnering with us,” said Boyle. “I believe after this expansion, they will be paying no Village taxes, which is unheard of.”
Matt Aracich, President of the Nassau-Suffolk Building Construction and Trades Council, was also present, and Boyle said he looks forward to working with Aracich and the Council regarding the labor required for the job.
Finally, Boyle thanked the team at Jake’s 58.
“We all know that a construction site is never easy to work in, but we want to thank all of our employees for Suffolk OTB and Jake’s 58. We have a tremendous team,” said Boyle.
Suffolk OTB Vice President Jim LaCarrubba said that since Jake’s 58 is a public benefit corporation, “everything goes back” to the community.
“What we’re doing here today is costing a little money, but it’s going to pay back in spades for everybody,” said LaCarrubba.
County Executive Romaine echoed the importance of a public benefit corporation, such as Jake’s 58, for Suffolk County.
“It’s a great day when we can create good, high paying union jobs. It’s a great day when a casino shares its money to help public education, and most importantly, the County of Suffolk,” said Romaine. “And we know we’re going to be spending that money because we’re going to be reinvesting in our county and our infrastructure, and it’s going to come without us having to raise taxes because the casino is going to provide us a stream of revenue that will allow us to do that. It’s a great entertainment facility and now it’s going to become even greater.”
Just before the official groundbreaking, a live bugler played the iconic “First Call” typically heard at horse race tracks, fully asserting that Jake’s 58 is, indeed, off the races.
On hand also were Suffolk County Clerk Vincent Puleo (R-Nesconset), Presiding Officer Kevin McCaffrey (R-Lindenhurst), Deputy Presiding Officer Steve Flotteron (R-Brightwaters), Minority Leader Jason Richberg (D-West Babylon), County Legislators Sam Gonzalez (D-Brentwood), Dominick Thorne (R-Patchogue), and representatives for Legislators Chad Lennon (R-Rocky Point) and Stephanie Bontempi (R-Centerport).
Jake’s 58 Casino and Hotel is located at 3635 Express Drive North in Islandia. The casino is open from 8:00 a.m. to 4:00 a.m. daily and can be reached at 631-232-3000.
