Home > Casino > SC Gaming, Bally’s terminate Nittany Casino agreement; project will continue

SC Gaming, Bally’s terminate Nittany Casino agreement; project will continue

| By Frank Legato
Bally’s Corporation backed out of a deal to build a Pennsylvania casino, the company announced on Friday (13 September). The company and Pennsylvania casino licensee SC Gaming said the agreement between the two to develop a Category 4 casino at the Nittany Mall in College Township, Pennsylvania is officially terminated.
bally's hotel sign night

However, in a joint press release, Bally’s and SC Gaming said the latter will continue the project alone. SC Gaming owner Ira Lubert, a Penn State alumnus and developer who previously opened the Valley Forge Casino in Eastern Pennsylvania, will complete construction with no third-party agreement.

“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 in the press release.

“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.”

Project still aiming for 2026 opening

The project, near Pennsylvania State University, survived local opposition in the approval process. The Cordish Companies also challenged the licence awarded by the Pennsylvania Gaming Control Board.

In July, The Pennsylvania Supreme Court rejected Cordish’s challenge to the licence. That cleared the way for SC Gaming and Bally’s to begin construction. The project is in a former anchor store in the mall.

Bally’s had announced its intention to begin construction in 2025, with a projected completion in the first half of 2026. SC Gaming has indicated it will keep that schedule intact and open the casino.

No surprise Bally’s is slimming down

Bally’s is in the middle of multiple projects across the US, including building casinos in Chicago and Las Vegas. The company has been under fire from analysts who believe it is overextended.

Bally’s was short on funds for the Chicago project until Gaming and Leisure Properties agreed to a deal. GLPI Friday announced that it now officially owns the land on which the Chicago casino will be built. It also owns the land on which a new MLB stadium and Bally’s casino will be built in Las Vegas.

In July Bally’s agreed to a buyout from Standard General.

“We are grateful for the collaboration and achievements we have accomplished with SC Gaming over the past three years,” said George Papanier, president of Bally’s Corp, in the release. “However, as our strategic focus evolves, we have made the difficult decision to conclude our relationship.”

Category 4 casinos, commonly known as ‘mini casinos’, are limited to 750 slots and 30 table games on opening. Owners can petition the state to add 10 table games after opening.

Subscribe to the iGaming newsletter