Jake’s 58 Casino Officially Sold to Suffolk OTB for $120M
Posted on: May 28, 2021, 10:16h.
Last updated on: May 28, 2021, 11:19h.
Jake’s 58 Casino on Long Island officially has a new owner following a $120 million transaction.
Delaware North confirmed the news that it has divested the Islandia, NY, casino hotel to Suffolk Off-Track Betting Corporation (Suffolk OTB). The sale, first announced in April, was completed this week.
Owning and managing Jake’s 58 will allow Suffolk OTB, both in the short term and the long term, to deliver to our beneficiaries in the state and county,” said Jim LaCarrubba, president and CEO of Suffolk OTB. “We are grateful to Delaware North for partnering with us to make Jake’s 58 such a success and for ensuring a smooth transition.”
Delaware North partnered with Suffolk OTB in 2016 to purchase the former 227-room Marriott Islandia hotel for $40.41 million. Suffolk, which was in dire fiscal straits at the time, had recently been given a lifeline by the state when lawmakers allowed horse racetracks and pari-mutuel betting facilities to operate video gaming terminals (VGTs).?
VGTs are similar to slot machines, with one major exception — their spin results are based on a network linking all the terminals. On a traditional slot machine, each device randomly determines if the bet is a winner, and isn’t dependent on other machines’ outcomes.
Suffolk Saves Lease Money
Suffolk OTB has been leasing Jake’s 58’s gaming operations from Delaware North since the casino opened in February of 2017. The property has more than 1,000 VGT machines and electronic table games.
Being privately held companies, Suffolk OTB and Delaware North did not reveal the lease terms. But in a statement this week, Suffolk explained that acquiring ownership of the casino will save the company about $13 million in annual rent.?
Suffolk OTB held a 50-year contract to manage Jake’s gaming business. But the company’s initial terms with Delaware North also gave Suffolk a path to buy out Delaware North once possible.
Suffolk confirmed it paid the $120 million purchase price to Delaware North by way of loans.?
Jake’s Financials
Since opening a little more than four years ago, Jake’s Casino has generated much revenue for Delaware North and Suffolk OTB.?
The casino reported gross gaming revenue (GGR) of $158.26 million in its first full year, $209 million in year two, and $218.7 million in year three. Last year, COVID-19 resulted in Jake’s being closed on state orders from mid-March through August. That resulted in GGR totaling just $104.2 million.
GGR, or net win — the money kept by the casino after paying out prizes to players — is split several ways. The casino retains 45 percent, while another 45 percent goes to the New York State Education Fund. The other 10 percent is allocated to the VGT manufacturer and distributor, and New York Lottery.?
Jake’s is one of nine VGT casinos in New York. But it has a large monopoly on much of Long Island, as Resorts World New York City in Jamaica, Queens, is the closest casino.?
Related News Articles
Most Popular
Most Commented
Most Read
Last Comments ( 4 )
This place is scam, save your money. Go to real casino like AC or mohegun. This place was good until suffolk otb bought it out from state, now it's impossible to win. This is reason in first place suffolk otb went bankrupt, they were too greedy to pay out and they are doing same with jakes 58. Please save your money guys, it's not worth it.
Went there yesterday...was told I needed to wear a mask....I said. "sure....give me one"". They said they did not have any...and I had to leave....I said that if they are demanding the people wear them....and the fact that the mask only cost about 3 cents currently... They should be giving them out... Suddenly a so-called supervisor of security came to tell me the same thing that his offices were telling me…... I walked outside, somebody else handed me a mask, I walked back inside and said this $0.03 mask was the deal breaker for you guys... The head of security then told me no matter what he did not want me in the building....I walked out... This is after I spent an hour and 20 minutes in traffic to get there.... So I called the place and told the woman on the phone what just happened... And she said they should have known we are giving out masks at the front desk... And they were given boxes of them also... I demanded to speak to the person in charge of the whole operation... After being on hold for 5 minutes I was greeted by a man named Dan... Told him what happened he said he was going to review the video tape and would call me back.... 46 minutes later I get the phone call telling me that he was sorry that they should have gave me a mask.. and he doesn't know why they didn't have mass to give out!!! I said Dan if I ran this business like this it would be out of business!!.. and those guards and especially the supervisor should not have a job!!! He defended them and told me to have a nice day !!! What a waste of time!! What a shame
Did the parking get any better now that it is on biote be because when it was Jake's it was really hard parking
Great I’ll be coming there soon by the way where are Suffolk’s OtB’s located