Posted on: September 20, 2024, 05:28h.
Last updated on: September 20, 2024, 05:28h.
The developer of the casino planned for the Nittany Mall in Pennsylvania’s College Township told the local community Thursday night that he hears their concerns.
Eric Pearson is the CEO of SC Gaming OpCo, LLC, the entity real estate tycoon Ira Lubert formed to bid during the Pennsylvania Gaming Control Board’s September 2020 auction round for a Category 4 casino license. Lubert, a Penn State alumnus and former member, vice chair, and chair of the university’s Board of Trustees, won the auction for a so-called “mini-casino” with a tender of a little more than $10 million.
The project has faced continual delays over the past four-plus years due to a legal challenge brought by the owners of Live! Casino & Hotel Philadelphia against the PGCB on allegations that Lubert violated bidding rules. The legal case reached the Pennsylvania Supreme Court but was ultimately dismissed in July.
During the legal process, thousands of enraged community members spoke out against Lubert’s ambitions to bring a casino with slot machines, table games, and sports betting a few miles from the Penn State University Main Campus. During a College Township City Council meeting on Thursday, Pearson said he’s open to an ongoing dialogue with residents to address their concerns.
We might not agree on everything, but I’m a part of this community just like you and it’s important to us that you are heard,” Pearson said.
Pearson offered to meet with anyone who wants to express their views on the project. But the gaming industry veteran and consultant, who also teaches the casino industry part-time at the university in the School of Hospitality Management, didn’t mince words about the Nittany Mall casino’s outlook.
The casino is coming. I’m going to be running it,” he said.
Pearson detailed that construction will begin early next year to renovate the Nittany Mall’s former Macy’s department store into a to-be-named casino. The gaming floor is expected to be ready in the first half of 2026.
We Are… Opposed
Casino.org has fielded hundreds of comments from community members expressing their deep opposition to Lubert’s casino vision. Only a handful of comments have been in support. Our coverage of Lubert donating $10 million to the renovation of Beaver Stadium left a sour taste in many mouths.
Many opponents attended Thursday’s meeting to express their frustration with not only Lubert but also the township councilors, the latter of whom didn’t motion to opt out of the Cat. 4 casino licensing process.
Pearson is seemingly tasked with lowering the public’s temperature.
Pearson’s College Township appearance follows Bally’s Corporation last week announcing its withdrawal from the Nittany Mall casino development. Bally’s had been Lubert’s longtime State College development copartner and was set to manage the property but the Rhode Island-based company said its priorities had since changed, with its $2 billion project in Chicago and possible new casino on the Las Vegas Strip the likely culprits.
Pearson last night met face-to-face with many Nittany Mall casino detractors, including Andrew Shaffer, the man Casino.org hears from almost weekly about the latest effort to squash the casino plan. Shaffer expressed his opinion that a casino so near a place of higher learning will result in problem gambling and suicide.
Longtime Lubert Ally
According to his LinkedIn and Copper Star Gaming consultancy firm bios, Pearson’s career began in Las Vegas where he climbed the ladder at several Strip casinos. After serving as vice president of gaming at Foxwoods Resort Casino in Connecticut, Pearson in October 2016 became Lubert’s president and CEO at Valley Forge Casino Resort.
Pearson remained in the role until Lubert and his co-investors in Valley Forge Convention Center Partners, L.P. sold the King of Prussia property in 2018 to Boyd Gaming for $280.5 million.
Pearson said Thursday that he’s Lubert’s “casino guy.”
The Valley Forge Casino Resort was a major financial win for its investors. The casino was the first in Pennsylvania to gain a Cat. 3 license, a resort-style gaming permit that limited access to hotel guests, and the number of gaming positions the casino could offer. People not staying overnight had to make a $10 purchase elsewhere in the resort or buy a casino membership.
The Cat. 3 licenses cost $5 million — $45 million less than the $50 million toll for standalone Cat. 2 casino licenses. In part of the state’s 2017 gaming expansion, the state allowed Cat. 3 casinos to pay a $1 million fee to eliminate the entry and gaming position restrictions. Cat. 3 casinos, however, were initially prohibited from bidding on the newly authorized Cat. 4 mini-casino opportunities.
When the PGCB opened up the bidding to individuals holding significant stakes in Cat. 2 slot licenses after bidding stalled, Lubert qualified because he continues to hold a 3% stake in Rivers Casino Pittsburgh.
