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Suffolk OTB isn’t content to wait until 2023. It has resumed looking into the possibility of a Medford casino.
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Unfortunately for Suffolk, the same civic group that derailed the project years ago hasn’t moved from its stance. Opposition to a casino in the community appears to still be strong.
What’s new with Suffolk’s plans for a Medford casino?
According to a report from News 12 Long Island, the operators of Suffolk OTB have filed documents for an environmental impact study relating to placing a casino in Medford. That’s one of the earliest steps necessary to build such a facility.
The potential site is the former Brookhaven Theater. It’s a 30-acre tract of land near the Long Island Expressway.
The study supposes the casino would cover approximately 160,000 square feet. The facility would offer video lottery terminals.
The Medford study comes in concert with a broader study of gambling expansion in the entire state. The New York State Gaming Commission initiated that study last week.
Among other things, the state’s study will examine the very subject of allowing casinos in other parts of the state like Medford. While the Suffolk OTB study may be redundant in some ways, the laser focus on the particular business model and location makes it unique.
On top of whatever obstacles the study may uncover, local support for such a facility appears to be minimal. That’s what put the brakes on the project three years ago.
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Local opposition to Suffolk already killed the project once
In 2016 a civic group called the Medford Civic Association was able to effectively squash any real movement toward renovating the Brookhaven for a casino. That same group has pledged to repeat its past success.
That opposition may only prove ironclad for a few more years, however. In 2023, an important tenet of the state’s current gambling law sunsets.
Until 2023, only the four upstate casinos may offer any types of gambling apart from horse racing and the lottery. While other companies do currently legally offer daily fantasy sports, that’s the subject of an ongoing lawsuit that Rivers Casino has joined.
In 2023, the “legal monopoly” that the four upstate casinos currently enjoy on things like slots and retail sportsbooks expires. At that point, the state will be able to award similar licenses to operators anywhere in the state.
For the owners of Suffolk OTB, having a facility ready to offer those types of games could allow it to pivot into that market quickly. They have more immediate concerns, however, having to do with their current business.
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Bankruptcy and a lawsuit cramping Suffolk’s style
After declaring bankruptcy earlier this year, the owners of the Suffolk OTB filed suit against Delaware North. The lawsuit alleges that Delaware North intentionally mismanaged Jake’s 58 Hotel & Casino in order to enrich itself and that played a role in Suffolk’s financial distress.
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Delaware North has denied all the allegations and petitioned a state court to dismiss the lawsuit. The court hasn’t scheduled a hearing on the matter yet.
If Suffolk’s owners aren’t successful in bankruptcy court, that may deter them from completing the study on the Medford casino. Even a desirable outcome in those affairs may not be enough to make the facility a reality, however, as support for such a business there remains low.
As part of a closed-door discussion this week, New York State lawmakers have been pushing for a proposal to build a casino on Long Island. State Sen. Phil Boyle and Assemblyman Steve Engelbright are trying to allow 2,000 video lottery machines at Off-Track Betting (OTB) sites throughout Nassau and Suffolk, according to a report from News 12.
Similar proposals have been in discussion for months, especially after Gov. Andrew Cuomo made an amendment to the state constitution last year that legalized public casinos in New York.
Possible locations for the casino include building one near the Nassau-Suffolk border. Another proposal would introduce two new facilities, each with 1,000 video slot machines.
Before Cuomo’s amendment last March, the state constitution technically prohibited gambling in New York. Due to a major loophole, video lottery machines and slot machines have still been legal.
The current proposals are in contrast to Cuomo’s recent public statements that gaming facilities should be run by operators rather than the state. He also demanded that the casinos be restricted to upstate.
Proponents of the bill say that building a casino would bring money to the state as well as create jobs. According to a report from the Associated Press, the proposal states that the gaming facilities would provide 'superior consumer amenities and conveniences to encourage and attract the patronage of tourists and other visitors from across the region, state and nation.”
There are currently nine OTB facilities that offer slot machines, however they do not offer table games such as poker and black jack. The operators of these “racino” centers say that they would be the best candidates to be turned into a privately run casino.
The proposals are still being discussed in private meetings in Albany, and it is doubtful that significant information will be released until they have come to an agreement and it is rushed to a vote in the state Legislature.