Bally’s drops out of Nittany Mall casino project in State College. Here’s what it means
The corporation that had an agreement to jointly design, develop, construct and manage the proposed $120 million mini-casino at the Nittany Mall called off the engagement.
In a joint statement released Friday afternoon, Bally’s Corp. said it exercised its option to end its relationship with SC Gaming after three years. The announcement said Bally’s “corporate strategic priorities have shifted elsewhere.”
“We are grateful for the collaboration and achievements we have accomplished with SC Gaming over the past three years,” Bally’s President George Papanier said in a written statement. “However, as our strategic focus evolves, we have made the difficult decision to conclude our relationship. We extend SC Gaming our best wishes for their ongoing development efforts and for their continued success.”
Owned by Penn State alumnus Ira Lubert, SC Gaming said the project would “proceed as planned” despite Bally’s dropping out. No other changes were included in the announcement.
“We expect the project to move forward and they’ve assured us that it will,” Pennsylvania Gaming Control Board spokesman Richard McGarvey told the Centre Daily Times.
Company CEO Eric Pearson told the CDT he hopes to see construction begin no later than the first quarter of 2025, slightly quicker than the Bally’s estimate of the first half of 2025.
SC Gaming said it anticipates the casino to open during the first half of 2026, in the Nittany Mall space formerly occupied by Macy’s. In a statement, Lubert described the proposed casino as a “transformational development” to life for central Pennsylvania.
“As a part of the Pennsylvania Gaming Control Board’s application and approval process, I demonstrated to the Board my resources and capability to independently develop and operate this casino project without reliance on a third party, including Bally’s,” Lubert said. “I have a proven track record of casino resort development in Pennsylvania, having successfully developed the Valley Forge Casino Resort during the challenging economic conditions following the 2008 financial crisis. With that experience, I am fully confident that this project will be a success, delivering a casino development that both College Township and the Commonwealth can take pride in.”
The announcement came less than two months after Bally’s agreed to a $4.6 billion buyout and merger from its largest stockholder Standard General, a New York-based hedge fund.
Bally’s also said in Friday’s release that ending the agreement aligns with its “long-term strategic goals and allows the company to allocate resources towards other priorities.” The company is also constructing an about $2 billion casino in Chicago and has a project in Las Vegas.
If the casino comes to fruition, supporters hope it will stabilize the mall, revitalize the area and create hundreds of jobs. Opponents have raised concerns about gambling addictions and placing a potential strain on first responders.
The 24/7 nonsmoking casino would have have up to 750 slot machines, 30 table games, a sports betting area, a sports-themed restaurant and a bar.
After reading Friday’s announcement, College Township Manager Adam Brumbaugh wrote in an email to the CDT that it appears the project will “continue to move forward.” He offered no further comment.
The casino was allowed to officially move forward this summer after being tied up in lawsuits for nearly four years after a ruling from the Pennsylvania Supreme Court.
This story was originally published September 13, 2024 at 5:00 PM.