Pennsylvania Casino Near Penn State Gains New Partner, Saratoga Holdings

A $100 million-plus casino project near Penn State in State College, Pennsylvania, secured a new partner.

SC Gaming OpCo, created by real estate developer and Penn State alum and former chair of the university’s Board of Trustees, Ira Lubert, announced on Tuesday its partnership with Saratoga Casino Holdings. The latter will “develop and manage” the facility at the Nittany Mall.

The casino’s category 4 license entitles it to 300-750 slot machines and up to 30 table games for an additional $2.5 million fee.

Plans for the casino

Saratoga is a family-owned, New York-based racing and gaming company that owns and operates facilities in New York, Colorado, and Mississippi. The new Pennsylvania project will become its fourth property. 

Terms of the partnership were not released to the public.

“We are excited to partner with SC Gaming and expand our footprint into the competitive Pennsylvania gaming market,” said Sam Gerrity, CEO of Saratoga Casino Holdings and a member of the owning family. “This collaboration will allow us to leverage each of our strengths and deliver an unparalleled experience to our customers.”

The casino will sit inside what was a Macy’s department store at Nittany Mall, a 532,000-square-foot, one-floor facility. SC Gaming and Saratoga will share responsibility for renovating the location. 

Previous plans called for the creation of a sportsbook and drink stations in addition to the usual gaming accommodations.

The mall is just a four-mile straight shot down East College Ave from Penn State’s campus. 

“After years of delays, we’re overjoyed to be finally moving into active construction,” said Eric Pearson, CEO of SC Gaming.

History and tracking progress 

The partnership was secured a few months after Bally’s Corporation, which was originally supposed to deliver the casino, pulled out due to a change in “corporate strategic priorities” as it prepares to open a $1.7 billion casino in Chicago, Illinois.

Lubert was awarded the rights to a category 4 casino after he bid $10 million during the Pennsylvania Gaming Control Board’s 2020 auction. 

The College Township Council didn’t opt out of consideration for a casino when it could’ve, which means that development will continue despite members of Centre County, which encompasses Penn State and Nittany Mall, largely opposing the project.

Lubert has been active in Penn State's community ever since he graduated. He voted to fire legendary football coach Joe Paterno amid the Jerry Sandusky abuse scandal and donated $10 million to help refurbish Beaver Stadium.

“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,” Lubert said. “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.”

The Township expects to have a report detailing the economic impacts of a casino by fall. SC Gaming estimated last September it anticipates opening the casino in the first half of 2026.