Lawsuit: Company that manages Jake's 58 is misusing millions at taxpayers' expense
Posted: Updated:Suffolk's Off-Track Betting is filing a lawsuit against the company that manages its casino in Islandia, claiming the company overcharged millions, at the expense of county taxpayers.
Suffolk OTB, which oversees the casino, filed the suit Monday against Delaware North, which manages the facility and owns the hotel that houses it. The OTB's complaint says in part, "Delaware North's secret business plan for Jake's 58 is simple: Costs are charged to Suffolk OTB's "Jake's 58 Casino" so that Delaware North's 'Jake's 58 Hotel & Restaurant' can make money."
Suffolk OTB Spokesman Jon Schneider says Delaware North is draining the marketing budget to comp hotel rooms it otherwise can't fill, enriching itself by millions. Money that, by law, should go back to OTB, and then to the county.
"There are hotel rooms, millions of dollars of hotel rooms, that are being given away," says Schneider.
But the operator of the casino denies the "contrived allegations of wrongdoing" listed in the complaint.
A spokesperson for Delaware North points out that Suffolk OTB remains mired in bankruptcy despite the success of Jake's 58, while adding, "Under Delaware North's management, the property has consistently out-performed financial projections, resulting in higher-than-anticipated returns for Suffolk OTB, the citizens of Suffolk County, and the State of New York."
The lawsuit is seeking in excess of $5 million in damages. Suffolk OTB says it still expects to climb out of bankruptcy next year, in large part due to the success of Jake's 58.
The casino's home village of Islandia, apparently has not fared as well. It was recently characterized by the state comptroller as being in "significant financial stress."
A spokesperson for the village declined to comment on the lawsuit.
NewsMore>>
Police: 2 men injured in hit-and-run in a Westbury parking lot
Police: 2 men injured in hit-and-run in a Westbury parking lot
Police in Nassau are searching for the hit-and-run driver who struck two men in a Westbury parking lot, leaving one of them with serious internal injuries.
Police in Nassau are searching for the hit-and-run driver who struck two men in a Westbury parking lot, leaving one of them with serious internal injuries.
Police in Nassau are searching for the hit-and-run driver who struck two men in a Westbury parking lot, leaving one of them with serious internal injuries.Police in Nassau are searching for the hit-and-run driver who struck two men in a Westbury parking lot, leaving one of them with serious internal injuries.Community leaders rally behind Freeport man who was an alleged victim of police brutality
Community leaders rally behind Freeport man who was an alleged victim of police brutality
The alleged victim of police brutality was at the Nassau County courthouse in Mineola Friday for a follow-up appearance days after a video of his arrest by Freeport officers went viral.The alleged victim of police brutality was at the Nassau County courthouse in Mineola Friday for a follow-up appearance days after a video of his arrest by Freeport officers went viral.Staple in Freeport skyline for 90 years reduced to rubble
Staple in Freeport skyline for 90 years reduced to rubble
A building that was part of the Freeport skyline for 90 years has now been reduced to rubble.A building that was part of the Freeport skyline for 90 years has now been reduced to rubble.Police respond to domestic incident in Center Moriches
Police respond to domestic incident in Center Moriches
There was a major police presence on William Street in Center Moriches Friday.There was a major police presence on William Street in Center Moriches Friday.Uber reports more than 3,000 sexual assaults on 2018 rides
Uber reports more than 3,000 sexual assaults on 2018 rides
Uber, as part of a long anticipated safety report, revealed that more than 3,000 sexual assaults were reported during its U.S. rides in 2018.
Uber, as part of a long anticipated safety report, revealed that more than 3,000 sexual assaults were reported during its U.S. rides in 2018.
Uber, as part of a long anticipated safety report, revealed that more than 3,000 sexual assaults were reported during its U.S. rides in 2018.Uber, as part of a long anticipated safety report, revealed that more than 3,000 sexual assaults were reported during its U.S. rides in 2018.
SlideshowsGalleriesMore>>
Dog Day Fridays for Dec. 6
Dog Day Fridays for Dec. 6
Manny is a 5-month-old male, Lab/Spaniel mix from Texas. He's an extremely playful, energetic and bouncy pup. He would thrive in a high energy home!
Manny is a 5-month-old male, Lab/Spaniel mix from Texas. He's an extremely playful, energetic and bouncy pup. He would thrive in a high energy home!
This week's dogs are up for adoption at Kent Animal Shelter. The shelter is located at 2259 River Road Calverton, NY 11933. Their phone number is 631-727-5731.This week's dogs are up for adoption at Kent Animal Shelter. The shelter is located at 2259 River Road Calverton, NY 11933. Their phone number is 631-727-5731.Chinese lantern festival lights up the sky above Citi Field for the holiday season
Chinese lantern festival lights up the sky above Citi Field for the holiday season
A new lantern festival has taken over Citi Field, lighting up the sky starting Friday.A new lantern festival has taken over Citi Field, lighting up the sky starting Friday.Your Long Island 2019 Holiday Photos
Your Long Island 2019 Holiday Photos
From sparking holiday lights to fun Santa photos, News 12 wants to see your holiday photos!From sparking holiday lights to fun Santa photos, News 12 wants to see your holiday photos!2019 Rockefeller Center Christmas Tree Lighting
2019 Rockefeller Center Christmas Tree Lighting
The 87th annual Rockefeller Center Christmas Tree lighting ceremony was held Wednesday, Dec. 4, 2019 in New York.The 87th annual Rockefeller Center Christmas Tree lighting ceremony was held Wednesday, Dec. 4, 2019 in New York.Your December 2019 Storm Photos
Your December 2019 Storm Photos
Do you have photos of the winter storm from the December 2019 storm? We want to see!Do you have photos of the winter storm from the December 2019 storm? We want to see!