Local news

Mini-casino planned for Centre

STATE COLLEGE -- Get ready, Centre County -- a casino is on its way.

Earlier this week, Bally's Corporation announced that it has signed an agreement with investor and Penn State alumnus Ira Lubert to develop a planned $120 million mini-casino in Centre County.

Although the specific location has not been determined, a news release from Bally's said that it will be located "near the Nittany Mall," just off state Route 26 in State College. Pending regulatory approvals, construction is expected to begin in the first half of 2021 and will take approximately one year to complete.

In the release, Bally's said that it has signed a framework agreement with Lubert, a real estate and private equity investor, to jointly design, develop, construct and manage the Category 4 licensed casino. The Pennsylvania Gaming Control Board recently awarded Lubert the right to apply for a Category 4 slot machine license for a casino to be located within a 15-mile radius of Unionville in Centre County.

In addition to being a Penn State alumnus, Lubert is a former PSU trustee. His winning $10 million-plus bid named Unionville as the centerpoint location, meaning the casino could be placed within a 15-mile radius of the borough in a municipality that has not opted out of consideration as a casino location.

"I am excited to have Bally's as our partner to complement our vision, industry experience and financing capabilities," Lubert said in a statement. "Together, I believe we will make this transformative project successful for all stakeholders and look forward to the positive impact the redevelopment will have on the community."

Lubert was qualified to bid because he is a partner in Pittsburgh's Rivers Casino along its North Shore. He does not have to name an exact location for the Centre County casino until he submits formal paperwork, which is required by March, according to the Associated Press.

According to the Pennsylvania Gaming Control Board, Lubert is still required to submit a formal application that will include the precise site of the proposed casino, along with detailed information about the proposed building plan, amenities and employment projections.

After the application is submitted and determined to be complete, the PGCB will publish it on its website and conduct a public hearing in the municipality where the casino is proposed. Host municipalities and counties each receive two percent of a casino's slot machine revenue and one percent of table game revenues.

The new casino is expected to have up to 750 slot machines and 30 table games. If approved for separate licenses and certificates, it also will provide retail sports betting, online sports betting and online gaming.

A mini-casino allows for 300-750 slot machines. For an additional fee of $2.5 million, a licensee can apply for permission to initially operate up to 30 table games, with an additional 10 after the first year of operation. Sports wagering requires a separate $10 million license fee.

Bally's President and CEO George Papanier said in a statement Pennsylvania represents an "attractive … gaming market" for the company to expand.

"Regional, land-based casinos remain the cornerstone of our portfolio diversification strategy, providing the necessary support for the growth, development and success of our future sports betting and iGaming initiatives," Papanier said in a statement. "We look forward to combining our own proven track record of greenfield development with Ira Lubert's local knowledge and expertise to bring Bally's first-in-class gaming experience and amenities to customers and sports fans across Pennsylvania."

Lubert is licensed by the PGCB through his ownership interest in Holdings Acquisitions Co., LP, operator of Rivers Casino Pittsburgh.

"Ira is an experienced real estate developer with significant ties to the greater Centre County community and a proven track record in Pennsylvania gaming," Papanier said in the statement. "We look forward to working with Ira, not only to build and develop the facility, but to contribute to the surrounding community."

The total project cost, including construction, licensing and sports betting/iGaming operations, is estimated at $120 million. Bally's will acquire a majority equity interest in the partnership, including 100 percent of interests of all retail sports betting, online sports betting and iGaming activities.

The transaction is subject to receipt of required regulatory approvals, operating certificates and other closing conditions.

In 2018, Lubert was the authorized member of Nittany Gaming LLC, which signed a memorandum of lease option for the former Bon-Ton space in the Nittany Mall. But at a 2019 auction for a category 4 license there were no bidders.

A total of 20 Centre County municipalities opted to prohibit being the site of a mini-casino when the state began awarding category 4 licenses in 2017. College Township did not, citing potential development in the mall area, nor did nearby Benner Township.

Chair of the Centre County Board of Commissioners, Michael Pipe, said that the county is eager to find out where exactly the casino will go.

"We're waiting and seeing where it's going to be," Pipe said. "Obviously, we'll work with the developer … the Centre County community has been hearing about this for some time."

A mini-casino could breathe some life into the Nittany Mall area, which has lost several anchor stores in the past couple of years. Macy's, Sears, JC Penney and Bon-Ton have left the mall. Currently, there is just one anchor store at the mall -- Dunham's Sports -- though Rural King is slated to take over the former Sears site. Rural King is expected to open later in 2021. The mall also recently lost Sears Automotive, which was a standalone garage at the back of the mall.

The mini-casino could potentially create hundreds of jobs for Centre County.

Bally's owns and manages 11 casinos across seven states including Bally's Atlantic City in Atlantic City, N.J., and Dover Downs Hotel & Casino in Dover, Del. Bally's also owns a horse racetrack and 13 authorized off-track betting licenses in Colorado.