Pennsylvania Court Rules In Favor Of State College Casino

State College, PA — The Pennsylvania Supreme Court has cleared the path for the development of a casino in State College, home to Penn State University, by striking down a legal challenge against the casino's developer, SC Gaming.

The ruling allows SC Gaming to proceed with its plans to build the casino in Nittany Mall, overcoming nearly four years of legal hurdles. The case began in September 2020 when Ira Lubert, part owner of Rivers Casino Philadelphia, won an auction for a Category 4 casino license with a $10 million bid. Subsequently, SC Gaming partnered with Bally’s to develop the casino on the site of a former Macy’s store in Nittany Mall.

Opposition and Legal Battle

[statebox post_id=”39506″ align=”alignleft”Stadium Casino, the operator of Live! Casino and Hotel Philadelphia, opposed Lubert's bid, arguing that his bid was invalid because it included financial contributions from individuals who would gain ownership stakes in the casino, which they claimed violated auction rules. Stadium Casino contended that Lubert’s bid was a proxy for outside interests not meeting the requirements to bid on a casino, which stipulates that bidders must already own a stake in an existing Pennsylvania casino.

Despite Stadium Casino’s appeal, the Pennsylvania Gaming Control Board (PGCB) approved SC Gaming’s application for the Category 4 license in January 2023. Stadium Casino then took the case to the Pennsylvania Supreme Court, resulting in the recent ruling.

The Pennsylvania Supreme Court unanimously ruled in favor of SC Gaming, citing that the PGCB had no regulations concerning the origin of a bid’s financing or mechanisms to challenge a bidder’s eligibility during the auction phase. The court highlighted that SC Gaming met all the requirements, including timely payment of the bid, which rendered Stadium Casino’s arguments invalid.

The court further emphasized that the PGCB’s thorough vetting process for license applicants ensures financial stability, integrity, and responsibility, mitigating any concerns about the legitimacy of the bid.

With the legal obstacles removed, SC Gaming’s plan for the Nittany Mall casino can proceed. The proposed casino is expected to feature 750 slot machines, 30 table games, a sportsbook, and a sports-themed bar, occupying 94,000 square feet. Initial estimates put the project’s cost at $123 million, though this figure has likely increased since its introduction.

“The absence of a mechanism by which to challenge a bidder’s eligibility at the auction stage is not surprising, considering the in-depth investigation performed by various divisions of the Board to vet slot machine license applicants.”

The addition of Nittany Mall Casino will bolster Pennsylvania’s already thriving gaming market. The state’s casinos generated $576 million in revenue in May, trailing only Nevada. Pennsylvania also leads the nation in online casino revenue, consistently posting over $200 million monthly.

As the Nittany Mall Casino comes to fruition, it is set to contribute significantly to the state’s gaming industry, potentially driving further growth and solidifying Pennsylvania’s position as a major player in the national gaming market.