State College Casino Developer Gifts Penn State $10M for Football Stadium Renovation
Posted on: September 6, 2024, 08:50h.
Last updated on: September 6, 2024, 09:51h.
The developer behind a planned casino in State College, Pa., just miles from the Pennsylvania State University campus, has gifted the school $10 million for its football stadium renovation project.
Ira Lubert won the rights to a Category 4 casino license on Sept. 2, 2020, when he was the high bidder during an auction round conducted by the Pennsylvania Gaming Control Board (PGCB). Lubert submitted a bid of $10,000,101 that narrowly edged Baltimore-based Cordish Companies.
This week, Lubert, a 1973 Penn State graduate whose real estate firm, Lubert-Adler, has a deep portfolio in office, industrial, residential, retail, and hospitality across the nation, announced a $10 million gift to the Beaver Stadium Revitalization. The donation will result in the Lubert Family Welcome Center, a new “landmark space” at one of the stadium’s entrances. The renovation project is to be completed in 2027.
Coming to Penn State set me on a path that has led to professional success and personal fulfillment, and I am honored that the Lubert Family Welcome Center will offer a fresh, exciting first impression for future Penn Staters as they discover all that the university offers,” Lubert said.
The Penn State Board of Trustees approved a $700 million renovation of Beaver Stadium in May. While most of the investment will be financed and no tuition money will be used, private donors continue to help reduce the amount of interest the school will pay by lessening the principal. With Lubert’s contribution, the renovation has now received $55 million in donations.
Nearby Casino Saga
The renovation of Beaver Stadium has faced significant scrutiny as the $700 million project comes as the school continues to try and reduce its costs by offering some employees buyout packages. Another high-profile controversy in Centre County is Lubert’s plan to open a casino.
After winning the September 2020 auction, Lubert announced a partnership with Bally’s Corp. to invest $123 million to renovate the former Macy’s department store at the Nittany Mall into a so-called mini-casino with up to 750 slot machines and an initial allotment of 30 live dealer table games, plus a sportsbook. The mall is less than five miles from the PSU Main Campus and Beaver Stadium.
Cordish raised allegations in litigation that Lubert violated bidding protocols by orchestrating an investment group that helped him fund the $10 million bid. Lubert’s investors, who were detailed later, were not eligible to bid since they didn’t hold “an ownership interest in a slot machine license” as Lubert did with his 3% stake in Rivers Casino Pittsburgh.
Cordish argued it should have been the only qualified bid that September, but the case, which made its way to the Pennsylvania Supreme Court, came down in Lubert’s favor. The state’s highest court in July upheld lower courts’ rulings in deciding that Lubert, while he might have organized an investment group to build the casino, had retained 100% control of SC Gaming OpCo, the entity he bid as, during the auction and subsequent remission of the $10 million fee.
PSU Steers Clear of Casino Controversy
After years of legal delays, Bally’s, which will operate the State College casino, told investors during its second-quarter earnings call that construction at the Nittany Mall is targeted for the first half of 2025.
Marcus Glover, the chief financial officer of Bally’s, said the company and Lubert’s team are “going through the process and obtaining the appropriate approvals.”
In July, Bally’s accepted a takeover from Soo Kim’s Standard General hedge fund. Bally’s has recently faced several credit downgrades, concerns about its financial outlook, and worries that the company could be overleveraged. ?
Many in the State College community remain opposed to the casino. Despite widespread opposition and thousands of local residents expressing disdain for a casino coming so close to where roughly 50,000 students study, the Penn State Board of Trustees refrained from taking a public position on the project. Since the College Township Council failed to opt out of being considered for a Cat. 4 casino, there is seemingly little recourse to block the Bally’s Pennsylvania casino.
Kim has remained quiet about what Bally’s future might look like once he takes full control. Under Standard General, Bally’s is expected to direct much of its focus on its $2 billion Bally’s Chicago undertaking, and possibly, a new resort in Las Vegas. That could prompt the company to fold on smaller regional operations like the one coming to State College. ?
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Last Comments ( 118 )
It seems counterproductive to permit a Casino in State College. Penn State is a respected institution that is committed to the positive development of its students. Why, then, would you allow the dangerous addicting presence of gambling to be built just a few miles from campus? I have lived here for over forty years and I have witnessed many changes to the community. The proposed Casino is by far the worst.
I am strongly opposed to a casino opening at the Nittany Valley Mall. The last thing our community needs, especially the PSU students is the opportunity to gamble. Adding gambling to the already recognized alcohol and drug abuse of students is a deadly combination. I am also appalled that the PSU Trustees have not adopted any kind of statement against gambling for students. Without such a statement there is a huge conflict of interest with Ira Lubert's recent $10 million contribution to the Beaver Stadium renovations and his being the developer behind the casino. This does not reflect the values of our community or the welfare of the students who live among us.
A casino is never a long term benefit in any community. The negative social impacts include but are not limited to increased crime and losses to local businesses because dollars spent at the casino take away from local restaurants and other retailers. I do not support the introduction of a casino in the State College area.
So disappointed to see Penn State leadership bending to the influence of money, once again! Although the University states in its mission and vision statement that it focuses on economic development throughout the state, it also prioritizes student health: "Focus on student mental health and financial literacy." Therefore, the University support for the casino is counter to its own mission. So sad to see how easy a few million can sway the administration.
There is no need nor want of a casino in State College nor will there ever be.
There is no no need nor want for a casino in State College nor will there ever be!
No good can come of building a casino in Happy Valley. It doesn’t serve our residents in any way and will have numerous repercussions- gambling addiction, crime, stretching resources of our already stretched public service employees. The list could go on. And Penn State leadership adamantly refuses to take a stand because of the HUGE conflict of interest in dealing with Ira Lubert. Mr. Lubert is donating $10 million to help fund Beaver Stadium renovations. It’s way more than that- it’s a guarantee the University will not speak out against his casino, which he stands to make a fortune from. He and the developers are the only ones who will win in this situation- the community loses greatly. Please, the citizens of the community do not deserve to be bullied into submission.
You know, we know, and we know you know what will happen to the quality of life in this special valley known for its rustic, isolated, quaint, but elegant charm. Gamblers and gambling proponents flooding into the area and downtown has the potential to total destroy Nittany Valley's reputation and it's ambience. Please please do not do this.
It’s all about the money. This will have a terrible outcome for the community, the whole county for that matter. College Township better be prepared for a high increase in crime.
We are not now or will ever be in favor of a casino being built in the State College area. There is absolutely no benefit that will outweigh the negatives from such an endeavor. We need to encourage businesses and projects that will bring our area positive and long lasting growth not short term ill gained profits and long term negative issues.
Once again, money talks a lot louder than the opinions and sentiments of the people who will have to deal with the trash this will bring into the community.
We are NOT in favor of a casino in State College and instead of using his funds to help people struggling with mental health challenges in the middle of a mental health crisis in our country and we see that reflected in State Volleg too when the truth is allowed to be seen that people need help… not gambling… not someone who made their money bc of an education at this awesome university bringing something that will hurt people long term and our community in order to make more money? Why isn’t he giving money to organizations in the community to help people and not hurt them.
A casino in a university town is just a bad idea. As a long time resident of State College and faculty at Penn State, I oppose this!
Penn State refusing to take a stance sends the loudest message of all: the profit of a few justifies the risk of the whole. Money over matter, no matter the cost.
As if the gambling ads on tv are not enough, we will have a casino in our back yard? A resounding NIMBY to that!