A lawsuit claims the management corporation of Jake’s 58 Casino on Long Island has violated terms of agreement and overpaid itself millions of dollars.
The Suffolk Regional Off-Track Betting Corporation, known as Suffolk OTB, controls the license for the casino’s machines.
Delaware North is a separate company that owns the building and operates the facility.
Jon Schneider, spokesperson for Suffolk OTB, says this management structure let Delaware North overpay itself and violate its terms of agreement with OTB.
“We’ve tried over a long period to address these matters internally and because we’ve been unable to, we now find ourselves in the position where we really have no choice but to bring this to the courts.”
He says Delaware North overcharged millions in construction costs and paid itself millions of dollars for hotel rooms through Suffolk OTB’s marketing budget.
The suit seeks punitive damages and a declaration that Suffolk OTB can terminate its contract with Delaware North.
Delaware North officials deny any allegations of wrongdoing.
