Pennsylvania: Bally's backs out of Nittany Mall casino plan; SC Gaming to complete project on its own

SC Gaming and Bally's Corporation have terminated their agreement to develop a Category 4 casino at the Nittany Mall in College Township, Pennsylvania. However, in a joint press release, the parties confirmed SC Gaming will continue the project alone.

Bally's Corp announced its intention to back out of the deal on Friday. The development was not entirely unexpected, given Bally's involvement in 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.

With Bally's now out of the picture, Pennsylvania casino licensee SC Gaming is set to move forward on its own. SC Gaming owner Ira Lubert, a Penn State alumnus and developer who previously opened the Valley Forge Casino in Eastern Pennsylvania, said the project will be completed 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 a 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.”

The project, near Pennsylvania State University, is still aiming for a 2026 opening. The plan has thus far survived both local opposition in the approval process and a The Cordish Companies challenge to the license awarded by the Pennsylvania Gaming Control Board.

In July, the Pennsylvania Supreme Court rejected Cordish’s challenge to the license, clearing the way for SC Gaming and Bally’s to begin construction. Bally’s had announced its intention to begin construction in 2025, with a projected completion in the first half of 2026.

The project, a category 4 casino, is set to occupy a former anchor store in the Nittany Mall. Category 4 casinos, commonly known as ‘mini-casinos’, are limited to 750 slots and 30 table games on opening. SC Gaming has indicated it will keep the original schedule intact.