New York's Suffolk County Off-Track Betting Corp. is nearing the opening of a new casino as part of a plan to exit from bankruptcy.
The new gambling venue will be at a different location than Suffolk OTB had previously planned
It received approval this month from the Village of Islandia to lease space at a Marriot Hotel property just off the Long Island Expressway for 1,000 video lottery terminals after scrapping plans for a facility in Medford, N.Y. due to community opposition. The new VLTs are aimed at creating a revenue stream as part of a $100 million bankruptcy debt-adjustment plan approved on Oct. 31, 2014. A temporary gambling facility with 250 to 300 machines is expected to open by year's end with full operations anticipated in 2017, according to Delaware North Companies Gaming & Entertainment, which will manage the new casino.
"The project will bring significant economic benefits to Suffolk County and Islandia, including tax revenue and creating new permanent operational jobs and short-term construction jobs, plus retaining existing jobs," said Delaware North in a statement.
Delaware North is providing Suffolk OTB a $65 million loan as part of the Chapter 9 bankruptcy plan. When Suffolk OTB originally filed under Chapter 9 on March 18, 2011, it listed its largest creditors as the New York Racing Association Inc., the New York State and Local Retirement System, and Yonkers Raceway. The agency closed half of its traditional betting parlors in favor of internet wagering and off-site gaming machines as part of state legislation allowing it to file for Chapter 9.
Delaware North has also established a taxpayer agreement with the Village of Islandia that provides the municipality with more than $2 million annually over the next 20 years. The agreement also gives Islandia a $1.53 million payment for the construction and development of the village's First Responders Recreation Baseball Field, which Mayor Allan Dorman says will prevent the need to bond for the improvements.
"We anticipate that upon approval of the taxpayer relief agreement, within the first two years, Village taxes will be reduced by up to 50%," Mayor Dorman said in a statement. "This approval provides several significant benefits to the Village and surrounding communities, including real, significant tax relief to Village residents, along with job creation for Suffolk County."
New York Gov. Andrew Cuomo signed a 2013 bill allowing Suffolk and neighboring Suffolk County to build one VLT facility each with a maximum of 1,000 machines. Nassau OTB was unable to gain support for a mini casino in the county so it instead agreed to a deal where it receives annual payments from Genting Group's 1,000 VLTs opening at Aqueduct Racetrack in Queens.
