Suffolk OTB is planning a $210 million expansion of Jake’s 58 Casino Hotel ahead of their competitors who are vying for the coveted NYC casino licenses. CEO Phil Boyle stated that they are not seeking one of the licenses but believe they will be able to compete well wherever the new casinos are located. The expansion, the first since the casino opened in 2017, is anticipated to increase annual revenue by up to 42%, double the number of terminals to 2,000, and expand the parking from 600 spaces to nearly 2,000. Boyle noted that they are one of only two government-owned casinos in the United States, with profits mainly going to the New York State Education Department and Suffolk County on Long Island.
State regulators recently announced that they will not make a decision on the new casino licenses in the New York City area until 2025, delaying the earliest opening of a gaming facility in the metro area to around 2026. Boyle is hopeful that the expanded Jake’s 58 will be ready before other casinos begin construction, citing their loyal customer base as an advantage. Potential bidders for the NYC licenses include Las Vegas Sands Corp., Wynn Resorts Ltd., and financier Steve Cohen, who is partnered with Hard Rock International. The winners of the licenses will be required to pay a one-time fee of $500 million to the state, with competition expected to be based on the amount of taxes bidders are willing to pay.
With the upcoming expansion, Suffolk OTB plans to essentially double the size of the current Jake’s 58 Casino, showcasing their commitment to growth and improvement. The increased revenue from the expansion will benefit both the New York State Education Department and Suffolk County, adding to the appeal of the project. Additionally, the focus on enhancing their offerings and infrastructure can help Jake’s 58 maintain its competitive edge in the market, even without one of the NYC casino licenses. The aim is to attract customers by providing an upgraded and expanded experience that sets them apart from other gaming facilities.
Despite not actively seeking one of the NYC casino licenses, Suffolk OTB is positioning itself to effectively compete with other casinos in the area through their expansion project. By investing in doubling their terminals, expanding parking, and increasing revenue potential, they are setting the stage for continued success and growth. Being one of the only government-owned casinos in the United States, they have a unique advantage in terms of where their profits are directed, benefiting both education and the local community. This strategic move aims to solidify their position in the market and attract customers with an enhanced and larger casino experience.
The delay in awarding the NYC casino licenses until 2025 provides Suffolk OTB with an opportunity to complete their expansion ahead of potential competitors. By completing the project before other casinos begin construction, they can establish themselves as a viable option for gaming enthusiasts in the area. The loyal following that Jake’s 58 has already garnered can serve as a foundation for future growth and success once the expanded casino is operational. With a strong emphasis on customer satisfaction and revenue generation, they are setting themselves up for continued success in the highly competitive gaming industry. Overall, their expansion plans demonstrate a strategic approach to positioning themselves as a key player in the market, even without one of the coveted NYC casino licenses.
