Nittany Mall Casino – What to Expect from Pennsylvanias New Commercial Casino at Nittany Mall
As local officials evaluate the massive economic shifts facing Centre County, a new study has been commissioned to measure the potential influence of a major development near Penn State University. As local officials evaluate the massive economic shifts facing Centre County, a new study has been commissioned to measure the potential influence of a major development near Penn State University. The investigation aims to determine exactly how the introduction of a high-stakes commercial casino at the Nittany Mall will transform the local landscape, assessing whether a $100 million gaming facility will serve as a primary engine for growth in Pennsylvania’s College Township.
The Rise of a New Casino in State College
The many fans who drive to tailgate and attend Penn State football games on Saturdays during the fall and winter will have a new amenity nearby in the coming years, as a casino will open at the Nittany Mall. College Township is fielding an impact study on the ramifications of becoming a host to a casino.
A History of Casino Development in Pennsylvania
During the lengthy legal challenge of allowing Pennsylvania businessman and former PSU trustee Ira Lubert to transform the former Macy’s department store at the shopping mall just miles from the university campus, the College Township Council didn’t commission its own independent, third-party study on how casino gaming might change the community.
In 2021, Lubert’s company, SC Gaming OpCo hired Econsult Solutions, a Philadelphia-based economic, planning, and public policy consultancy, to render such a forecast.
The Request for Proposal is Underway
Four years later, the township is moving forward with its review. The request for proposal went out weeks ago, with bids due Friday. The council will soon determine the winner and expect the report sometime this fall.
The findings will have no bearing on Lubert’s project, which is amid early construction. Fencing has gone up around the former Macy’s anchor store and all state and local permits have been secured.
What’s at Stake?
Casino Study is for Planning Purposes
Lubert, who donated $10 million to the $700 million renovation of Beaver Stadium, home of the Penn State Nittany Lions football program, secured the rights to open a commercial casino in Centre County through a September 2020 auction round held by the Pennsylvania Gaming Control Board (PGCB).
Lubert’s little more than $10 million bid outbid an undisclosed offer from Baltimore-based Cordish Companies.
The Econsult Report: A Net Positive Impact
Cordish sued the PGCB on grounds that it wrongly allowed Lubert to bid as a consortium with investors unqualified to participate. In the case that ran several years, the Pennsylvania Supreme Court resolved the litigation last summer when it sided with the PGCB in determining that Lubert maintained 100% control of SC Gaming OpCo at the time of bidding.
The Econsult report found that a casino at the Nittany Mall would have a “net positive impact on College Township tourism, helping to revitalize the Nittany Mall and attract other retail and hospitality operators to the area.”
The study concluded that crime would increase only minimally, with an additional 6.2 calls for police each month, or a 1.7% increase in non-traffic related police calls for the State College Police Department.
Critics Weigh In
Critics of the casino — and there are many in State College — say the study was biased. They believe a casino so close to the state’s largest university will deliver increased rates of problem gambling, substance abuse, financial distress, broken relationships, college dropouts, and suicide.
The Township’s Response
College Township believes its own study will better provide insights into the casino’s true impact. Township Manager Adam Brumbaugh said this week that the local government will use the findings to determine how to best offset negative consequences.
A Shift in Plans
Lubert had hoped to open his casino at the Nittany Mall, with Bally’s running the place. Soon after winning the gaming license, Lubert, who was an early investor in the Valley Forge Casino Resort, and who retains a 3% stake in Rivers Casino Pittsburgh, the latter of which qualified him to bid in September 2020, announced Bally’s as his partner.
Bally’s announced its exit from the project in September. Facing financing concerns for its nearly $2 billion investment in Chicago, the casino operator said it was focusing its energies elsewhere.
A New Direction
Lubert wasn’t fazed. He said he has the “resources and capability to independently develop and operate” the casino “without reliance on a third party.”
The Impact of Casinos in Pennsylvania
- Casinos can generate significant revenue for local governments through taxes and licensing fees.
- Casino development can create jobs and stimulate economic growth in surrounding areas.
- Casinos can attract new businesses and residents to an area, boosting local economies.
- However, casinos have also been linked to increased crime rates, substance abuse, and financial distress.
The Future of the Nittany Mall Casino
The future of the casino remains uncertain. However, one thing is clear: College Township is taking a proactive approach to understanding the potential impact of this new amenity on their community.
Conclusion
In conclusion, the opening of a new casino in State College raises several questions about its impact on the local community. While some argue that it will bring economic benefits, others believe it may exacerbate existing social issues.
Frequently Asked Questions
What is being built at Nittany Mall?
A new commercial casino is being developed at Nittany Mall in College Township.
What is the expected impact of the casino?
The casino is expected to have a positive impact on tourism and local business growth.
What concerns have been raised about the casino?
Critics are concerned about potential increases in problem gambling, substance abuse, and social issues.
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