NEW YORK (WCBS 880) — Suffolk County Executive Steve Bellone on Tuesday called for an investigation into Suffolk Off-Track Betting Corporation’s purchase of Jake’s 58 Casino Hotel.
The casino, which opened in 2017 in Islandia, is New York State’s most successful gambling halls and the parking lot is usually fully packed – except during the pandemic.
It was run by casino operator Delaware North since opening but was recently sold to Suffolk OTB for $120 million. The problem, Bellone says, is that the sale went through without a review from the county – something he says is concerning.
“My immediate response to that was, as we got the details of this – which would be, essentially, in addition to removing the casino operator – this agency assuming $120 million in debt. Now, why is that concerning? Why does that raise eyebrows? Well, this is an agency that just recently emerged from bankruptcy,” Bellone said.
The county executive believed the deal was a waste of taxpayers’ dollars.
“[Suffolk OTB’s] literal purpose is to deliver money to Suffolk County taxpayers,” Bellone said. “Before they kick out the professional casino operator, and assume $120 million in debt, let us do an analysis, have an independent firm do an analysis.”
Bellone says the deal went forward without OTB providing any details about its financial plans to run the casino.
However, Suffolk OTB president and chief executive James LaCarrubba told Newsday that taxpayers’ money had no role in paying for the casino. He also adds that the deal was approved by the New York State Gaming Commission.
"As we have repeatedly discussed with Suffolk County officials, as the debt service on the transaction is less than we are currently paying in management fees and rent, this is an immediate net positive for taxpayers, a benefit that will only grow in time," LaCarrubba told the outlet.
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