Delaware North Selling Jake’s 58 Casino on Long Island for $120M to Suffolk OTB
Posted on: April 14, 2021, 04:15h.
Last updated on: June 30, 2021, 09:44h.
Delaware North is selling Jake’s 58 Casino Hotel on Long Island to the company that has long been operating its gaming machines.
Newsday, a daily media outlet covering the Long Island counties of Nassau and Suffolk, broke the news today that Suffolk County Regional Off-Track Betting Corporation (Suffolk OTB) is the buyer. The reported purchase price for the Islandia, NY, casino is in the neighborhood of $120 million.
Suffolk OTB operates three off-track betting locations on Long Island, and has “Qwik Betz” kiosks at numerous bars, restaurants, and convenience stores throughout the region.
As part of the management agreement between Suffolk OTB and Delaware North, Suffolk OTB has an option to purchase the Jake’s 58 property and buy out the remaining term of Delaware North’s management agreement for the gaming operation,” Suffolk OTB spokesperson Jon Schneider explained. “Simply put, ownership of the Jake’s 58 property and management of the casino hotel will put Suffolk OTB in a position to contribute more money to Suffolk County than it otherwise would, a benefit that will only grow in time.”
Jake’s 58 today offers guests some 1,000 gaming machines and electronic table games, as well as off-track betting.
Jake’s 58 opened in February of 2017 several years after the state decided to allow horse racetracks and pari-mutuel betting facilities to operate video gaming terminals (VGTs).
The Marriott Islandia came on the market in 2016. Suffolk targeted the 10-story complex with 227 hotel rooms for its casino. But after filing for bankruptcy in 2011, the off-track betting group didn’t have the financial wherewithal to buy the hotel.
Suffolk partnered with Delaware North, a global food service and hospitality company headquartered in Buffalo, New York. Delaware North paid the $40.41 million purchase price for the Marriott, and rebranded it as Jake’s 58 Casino Hotel.
The name is derived from the Jacobs family, which has owned Delaware North for more than 100 years. The “58” is in reference to the closest exit number to the casino off the Long Island Expressway.
Since 2017, Suffolk has been leasing the gaming floor from Delaware North at an undisclosed cost. Both companies are privately owned.
Delaware North will still have gaming interests following its Jake’s 58 sale. The company retains gaming properties in upstate New York, Arizona, Arkansas, Florida, West Virginia, Ohio, Illinois and Australia.
Casino Saved Suffolk
Jake’s 58 has been wildly successful in its four years in business.
Since reopening in September following a mandatory suspension of operations because of COVID-19, gamblers have wagered approximately $1.7 billion on Jake’s VGT machines. The casino kept more than $104.2 million of the bets.
Forty-five percent of VGT gross gaming revenue is allocated for the New York State Education Fund. Another 10 percent goes towards the central video gaming system vendor, terminal providers, and New York Lottery.
The casino retains the remaining 45 percent.