The village of Islandia, located in the Suffolk County, New York, confirmed on Friday that it would appeal a Supreme Court ruling that the opening of a Suffolk OTB-run VLT casino at the local Jake’s 58 hotel was the result from improperly issued permits by village officials.
The Islandia Village Board granted the contentious permit in August 2016, thus giving the nod to the opening of a casino with 1,000 video lottery terminals. The move met staunch opposition from a great number of residents of the area, who feared that the gambling venue would ruin the integrity and peacefulness of their community.
The matter was brought to court and New York State Supreme Court Justice William G. Ford was appointed to hear the involved parties and make a decision on the matter. Justice Ford announced his ruling on September 8, but it was not until a few days ago that it was made public.
Justice Ford’s Ruling and Expected Consequences for the Casino
In his ruling from September 8, Justice Ford said that the casino should not have been granted approval as it was not “customarily incidental” for the overall operation of the hotel. He further noted that neither village officials, nor Delaware North, the Buffalo-based company behind the gambling venue, were able to provide such finding. The Supreme Court Justice based his ruling on the fact that no other hotels in the Long Island area featured casinos.
The gambling venue will remain open for now, but its future is quite uncertain. Justice Ford will hold an October 5 conference with village lawyers and opponents of the casino to discuss further details about the involved parties’ further actions.
Following the August 2016 approval, the facility was eventually launched in February. Revenue figures have shown that it has proved to be quite popular with gambling customers. According to financial reports from the New York State Gaming Commission, the venue generated monthly revenue of around $220 million in August.
The casino’s opening was seen as particularly good news by the bankrupt Suffolk OTB. Back in February, agency executives told media that the gambling venue, a first of its kind in the Long Island region, could be Suffolk OTB’s last chance to exit bankruptcy. The agency needs to pay $15 million for the purpose, which were hoped to be contributed by the Jake’s 58 casino.
Village officials have three months to appeal the latest ruling. They did not immediately respond to requests for comment, but Jake’s 58 owners pointed out that they believe the appeal would be successful as the casino brings millions of dollars in tax revenue and aids directly educational programs.
Despite being a major revenue contributor, the gambling venue has been broadly opposed by residents of Islandia as it has been disturbing the quiet character of the region.
