Jake’s 58 Casino Hotel Hit With 26 Compliance Violations

Jake’s 58 Casino Hotel in Long Island, New York, is fighting more than two dozen state violations for allegedly employing people without a standard gaming license.

New York State Gaming Commission listed nine employees without a license at Jake’s 58 Casino Hotel

In a Dec. 15 email addressed to Suffolk Regional Off-Track Betting Corp. CEO Phil Boyle, the New York State Gaming Commission (NYS Gaming Commission) listed nine employees without a license and 25 who had either an expired or incorrect type of license, according to records obtained by Newsday through a Freedom of Information Law request.

Employees are required to have a gaming license to work at a casino to help maintain the integrity of the gambling operation. Those convicted of felonies and gambling-related misdemeanors can be denied a license, according to the NYS Gaming Commission.

None of Jake’s 58 Casino Hotel employees were accused of any further wrongdoing by the NYS Gaming Commission. However, the incompetence in the hiring process is still a bad look for a casino in the Empire State.

As of April 1, a total of 26 employees remained out of compliance. According to NYS Gaming Commission spokesman Brad Maione, Jake’s 58 was issued a $26,000 fine, or $1,000 per employee.

License issues may have originated under the casino’s original operator, Delaware North

Jake’s 58 Casino Hotel is owned by Suffolk OTB. One of those employees in violation has left, but the others are still employed by Suffolk OTB, Boyle said. Jake’s 58 is reviewing candidates for a new full-time staff position focused on licensing compliance, he said.

In a statement, Boyle said the OTB had believed all its employees were in compliance until the state completed its audit last year and discovered that some of the issues originated under the casino’s original operator, Delaware North.

Furthermore, Jake’s 58 management has appealed the decision. The fine has been stayed until the matter is settled, Maione said. OTB bought the hotel from Delaware North and launched its casino operations in 2021.

“Though we were only recently notified of any issues, questions date back to when Delaware North ran Jake’s 58 Casino Hotel,” Boyle said. “It is our intention to address them, resolve them and become a statewide model for other casinos to follow regarding gaming license compliance.”

Boyle said casino revenue has increased since Suffolk OTB took over. The casino’s net revenue was $277.3 million in fiscal year (FY) 2023-2024 compared to $218.7 million in FY 2019-2020. That was the last pre-pandemic year under Delaware North ownership, according to the NYS Gaming Commission.