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Judge: Islandia erred in granting casino permit

Albany Law School Professor Ted De Barbieri noted, however, that Ford’s decision centered on the absence of hotel-casinos on Long Island. Attorneys for Islandia and Delaware North had argued that five upstate hotels have casinos — but Ford dismissed that as irrelevant, adding that gaming facilities are not “common, habitual, or well-established” at Long Island hotels.

“It was pretty clear-cut as a ruling,” De Barbieri said. “In this instance, the judge focused on local zoning norms, which there is nothing in the record to support the finding that these types of terminals are in use in other hotels on Long Island.”

The betting parlor — Long Island’s first, and only, video-lottery casino — opened this year in what had been an existing hotel after a four-year effort by Suffolk OTB and Delaware North to find a location for it.

Ostrow and De Barbieri both said they were not sure whether Ford’s decision would be overturned or upheld. “I think it could go either way,” Ostrow said.

Islandia casino finishes expansion Jake's 58 Casino and Hotel in Islandia is installing its final group of video lottery terminals to reach its licensed maximum of 1,000. Workers were finishing up the expansion Wednesday, May 17, 2017. (Credit: Newsday / Chuck Fadely)

A lot at stake

The stakes are high for Suffolk OTB, its 400 employees and the county.

The casino, which features 1,000 terminals where bettors play electronic versions of games such as blackjack and baccarat, had increased revenue each of its first six full months of operation since February. Gross revenue last month dipped slightly to 7.8 million, compared to 9.14 million in August, according to state Gaming Commission figures.

Suffolk OTB officials have said the casino saved 250 jobs, and has created an additional 250 jobs at Jake’s 58. In addition, Suffolk County is guaranteed at least million from the casino over its first 10 years of operation.

Islandia casino construction starts Work is beginning on the new casino in Islandia. The facility in the old Islandia Marriott hotel, which will be renamed, will have 1,000 slot machines in about 40,000 square feet. The project manager Chuck Kilroy said the new owner Delaware North expects the first phase of the casino with 250 slots is expected to open in February 2017. (Credit: Ed Betz)

Suffolk OTB officials have said they plan to seek state permission for an additional 1,000 terminals in Islandia.

The Islandia village board voted 4-0 on Aug. 12, 2016, to approve the special permit. The gaming commission approved an operating license for the facility on Feb. 27, and the casino opened hours later.

Casino opponents, including several Islandia residents joined by civic groups from nearby Hauppauge and Ronkonkoma, sued Islandia and Delaware North last year. In addition to questioning the special permit, their lawsuit argued that the village board had illegally voted without a written resolution and without first seeking crime and traffic data. Ford did not rule on those other issues.

Suffolk police said they have responded to 103 calls to Jake’s 58 since the casino opened, but could not immediately provide separate statistics for the casino and the hotel. The calls included seven grand larcenies, eight petty larcenies, four harassment cases, and 18 “disturbance” incidents.

Paul Sabatino, a Huntington Station attorney who represents casino opponents, said the facility should lose its state license if Ford’s decision is upheld because casinos must comply with local laws to operate.

“If the Gaming Commission has an ounce of integrity, they have to revoke the license,” Sabatino said. “They just don’t meet the criteria.”

A commission spokesman declined to comment.

Lawyers for Islandia and Delaware North said in their appeal they believe Ford “erred as a matter of law.” Islandia Village Attorney Joseph Prokop said in an email that the village “is confident it will prevail in this matter.” He did not elaborate.

Suffolk OTB and Delaware North officials have said they believe the casino will not be shut down.

The village’s appeal is expected to be heard by the Second Appellate Division in Brooklyn. Arguments have not been scheduled.

Ultimately, the case could end up before New York’s highest court, the Court of Appeals.

A final decision in the case could be years away, said De Barbieri, adding that a lawsuit filed by opponents of a proposed shopping mall at Willets Point in Queens took four years before the Court of Appeals ruled in the plaintiffs’ favor earlier this year.

Ford’s decision, if upheld by appeals courts, could bring the demise of the casino, De Barbieri said.

“The appellate court could uphold the lower court,” he said. “As a result, they could say, ‘You can’t operate.’ ”

Carl MacGowan is a Long Island native who covers Brookhaven Town after having previously covered Smithtown, Suffolk County courts and numerous spot news and feature stories over his 20-plus year career at Newsday.

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