Jake's 58 ex-worker sues Suffolk OTB, alleges casino supervisors skimmed tips

A former Jake’s 58 cashier has filed a federal lawsuit alleging that the Islandia casino's owner, Suffolk OTB, allowed supervisors to skim money from an employee tip pool, reducing income for hourly workers.

Kevin Guttinger, of East Patchogue, who worked at the casino for about two years until Nov. 1, 2024, says in court papers that Jake's 58 supervisors raided tip collections when they were given control over the cash in 2022, leaving less money available for hourly workers such as himself.

The lawsuit, filed Oct. 26 in the federal court's Eastern District, which includes the Central Islip and Brooklyn federal courthouses, does not specify how much in lost wages Guttinger is seeking.

In court papers, Guttinger and his lawyers said OTB "had not paid [Guttinger] all tips to which he was entitled."

The lawsuit seeks as compensation "all tips unlawfully kept, retained or diverted" by OTB.

Guttinger's attorneys, Nicholas Conlon and Michael Rinderman, of Jersey City, New Jersey, said in court papers they hope to convert the case into a class-action lawsuit including other Jake's 58 workers. The lawsuit does not identify Jake's 58 employees who may have been affected.

The lawsuit does not estimate how much tip money may have been kept by Jake's 58 supervisors.

In a statement, Suffolk Regional Off-Track Betting Corp. attorney Thomas M. McNally said the agency does not comment on "pending litigation matters," adding, "We will address the allegations through the appropriate legal process."

Reached by phone, Guttinger, who did not give his age, declined to comment until he could speak to his lawyers.

In an email Friday, Conlon wrote, "We do not have any comment, nor does Mr. Guttinger." 

In the lawsuit, Guttinger said he and other hourly Jake's 58 employees were part of a "mandatory tip pool." 

Guttinger was paid $18 an hour, plus tips, the lawsuit says.

Citing federal labor law, the lawsuit says managers are not entitled to tips, but Jake's 58 included "managers and/or supervisors" in the pool.

The weekly tip pool typically exceeded $50,000 for about 50 employees, the lawsuit says.

Suffolk OTB added supervisors to the tip pool in January 2022, "instead of providing increased supervisor compensation directly from [OTB's] own funds," the lawsuit says.

"As a result, hourly-paid tipped employees receive less in tips than they would have received if [OTB] excluded managers, supervisors and other ineligible employees from the tip pool," the lawsuit states.

In addition, hourly workers "do not receive complete transparency" about how much cash was in the tip pool, the lawsuit claims.  

Guttinger says in the lawsuit he was fired in November 2024, about nine months after raising his concerns with Jake's 58 management.

Guttinger said in the lawsuit he believes he was fired in retaliation for complaining to managers about the tip pool policy.

Jake's 58 Hotel & Casino opened in February 2017 in the former Islandia Marriott Long Island hotel on the North Service Road of the Long Island Expressway.

Suffolk OTB broke ground two years ago on a $210 million expansion of the casino, which also includes a 200-room hotel and a small restaurant. The expansion is expected to double the casino's 1,000 video lottery terminals and add a three-story garage, increasing parking from 600 spaces to almost 2,000.

In August, Islandia Village officials approved preliminary plans to build an additional 779-space parking lot on property near the casino.

By Carl MacGowan

carl.macgowan@newsday.comCarlMacGowan

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.