Six months after Bally’s withdrew from the project, a new partner has entered the picture for the casino under construction at the Nittany Mall.
SC Gaming, the Ira Lubert-led company behind the State College area casino, and Saratoga Casino Holdings LLC have signed a framework agreement to develop and manage the venue inside the former Macy’s location at the mall, pending regulatory approvals.
The deal calls for Saratoga — which operates Saratoga Casino Hotel in New York, Saratoga Casino Black Hawk in Colorado and Magnolia Bluffs Casino Hotel in Mississippi — to acquire a majority interest in the property upon completion.
“We are excited to partner with SC Gaming and expand our footprint into the competitive Pennsylvania gaming market,” Sam Gerrity, CEO of Saratoga Casino Holdings LLC, said in a statement. “This collaboration will allow us to leverage each of our strengths and deliver an unparalleled experience to our customers.”
Construction began earlier this year on the estimated $120 million category 4 casino in the 94,000-square-foot anchor spot at the mall and is expected to be completed in early 2026. It will operate 24 hours a day, seven days a week and will have 750 slot machines, 30 table games and sports betting, along with a sports-themed restaurant and bar with an entertainment stage and a multi-outlet quick-serve food court.
Lubert won the auction to apply for a category 4 license in 2020 and the licensing process began in 2021. The project was delayed for years, however, after a competing company challenged the license, arguing that Lubert — who was eligible to bid because of his ownership interest in other casino properties — acted as a “Trojan horse” for other parties, including Bally’s, who would not have been eligible.
The Pennsylvania Gaming Control Board approved the license in January 2023 and the state Supreme Court dismissed the legal challenge last year.
“After years of delays, we’re overjoyed to be finally moving into active construction,” Eric Pearson, the CEO of SC Gaming and general manager of the casionSC , said in a statement. “After an intensive and expansive evaluation process, we’ve found the right partner with Saratoga, who shares our core values and a strong focus on guest experience. The pending partnership will help us build a casino the community can be proud of.”
SC Gaming has already submitted a request for corporate restructuring to the Gaming Control Board. That is the first approval that will be required before the transaction with Saratoga can move forward, PGCB spokesman Doug Harbach said.
“The PGCB’s Office of Enforcement Counsel will respond to the petition and it will be placed on a public meeting agenda for a public hearing and Board consideration,” Harbach said.
That approval would be conditioned on the successful licensure of new individuals and entities associated with the casino after a full background investigation, which Harbach said can take months to complete.
“Should both of those things happen, the parties could settle on the business transaction,” he said.
While the casino is moving forward, some community members have maintained their long-running opposition, based on worries about gambling addiction, especially among students at nearby Penn State, an influx of crime and skepticism that the casino would be an economic boon.
Pearson met with residents last fall to discuss their concerns. He also said at the time that a partner for the casino project was helpful but not necessary, and that Bally’s departure had no impact.
“Other than changing the name on the side of the building, there was no difference,” Pearson said. “We were always developing the casino. It was our group that was building it, making all of the decisions, and none of that changed with Bally’s departure.”
