How the Authorities of College Township Intend to Change the Fate of the Town and Why the Independent Study of the Casino near Penn State Concerns Thousands of Residents
The authorities of College Township in Pennsylvania made an unexpected decision—they initiated an independent study of the consequences of building a large casino near the Penn State University campus. The future of the $100 million project on the territory of Nittany Mall is sparking heated debates among residents, students, and experts. Why does this issue remain relevant after so many years, how does the local community hope for a new analysis, and can the authorities find a compromise in a situation where the stakes are so high?
Casino Project: From Idea to Implementation
The former Macy’s department store in the Nittany Mall, located in close proximity to the Penn State campus, has become the focal point. It is here that, with the funds of private investor Ira Lubert, an entertainment complex with a gaming hall is being built. According to official data, Lubert is investing over $100 million in the facility, and he chose the site due to its strategic location and potential to revitalize the shopping center.
Ira Lubert’s biography deserves special attention. He is a graduate and former trustee of Penn State, donated $10 million for the renovation of Beaver Stadium, and is also known as an experienced player in the gambling market, owning a stake in Rivers Casino Pittsburgh and previously investing in Valley Forge Casino Resort. It was his experience and ties with the university that allowed him to win the Pennsylvania Gaming Control Board (PGCB) auction for a license for the new casino.
Nittany Mall had long been a hub for the town’s residents, but after the closure of several stores, it was in dire need of revitalization. Using vacant spaces for the gambling business became one of the few viable alternatives for restoring economic activity in this area.
The project’s authors believe in its success even though more and more modern people prefer to gamble online. This is evidenced by the popularity of various online casinos: Megapari, Pin Up, and 1win. Many of these brands are popular in many countries around the world. And since there are many Asian migrants in America, Melbet India and other online casinos popular in Asia are also familiar to Americans.
It is also worth noting that Pennsylvania is not among the popular tourist destinations for gambling enthusiasts. However, among local residents, there are still many who enjoy gambling and prefer to visit land-based casinos.
Legal Disputes: The Struggle Over the Right to Build
The question of the legitimacy of obtaining a license for the new casino remained the subject of heated legal battles. During the PGCB auction in September 2020, Cordish Companies from Baltimore tried to challenge Lubert’s victory, claiming that he acted in the interests of a consortium with investors who were not eligible to participate in the bidding.
The main stages of the legal proceedings dragged on for several years: Cordish pointed to violations of auction rules, while PGCB and Lubert himself argued that control over SC Gaming OpCo belonged only to him at the time of the application. In the summer of 2023, the Pennsylvania Supreme Court put an end to the legal dispute, confirming the legality of Lubert’s participation and giving the final green light to the project.
The court’s decision removed formal obstacles to construction, but could not fully allay public concerns. The question arose: is it possible to take into account the interests of all parties when it comes to such a large-scale change in the urban environment?
The First Study and a Wave of Criticism
Even at the initial stage of the project’s development, the initiative for studying potential effects came not from the authorities, but from the investor himself. SC Gaming OpCo commissioned the consulting firm Econsult Solutions from Philadelphia to prepare a forecast of the casino’s impact on the region.
According to Econsult’s report, the launch of the gaming complex was supposed to bring a “substantial economic effect,” increase tourist flow, contribute to the revitalization of Nittany Mall, and attract new companies in retail and hospitality. It was assumed that the number of crimes would increase only slightly: by 6.2 police calls per month (1.7% of the total number of calls, according to State College Police).
Supporters of this scenario cited several arguments:
- Growth of local budget revenues due to tax receipts
- Creation of new jobs and support for small businesses
- Attraction of tourists and increased investment appeal of the region
However, critics quickly questioned the objectivity of Econsult’s work. Public organizations, Penn State professors, and some students pointed to the risk of increased gambling addiction and related problems: an increase in requests for help, a decline in academic performance, financial difficulties, and threats to the well-being of young people. Experts noted that proximity to the university could intensify negative effects, and similar projects in other college towns in the US (for example, in Lexington or East Lansing) were accompanied by an increase in the number of addicts and a worsening crime situation.
Why a New Analysis Is Needed
The municipality decided to conduct its own independent study several years after the start of work in order to obtain a more accurate picture of the real consequences. What prompted this step?
Firstly, trust in the previous study was undermined due to a conflict of interest between the investor and the client of the analysis. Secondly, the public discussion about social consequences only intensified after the start of construction.
To select the contractor for the study, the Request for Proposal procedure was used—an open competition where any qualified contractor can apply. As College Township manager Adam Brumbo explained, the administration intends to study the economic, social, infrastructural, and educational aspects of the casino’s impact in order to “develop a system of measures to compensate for possible negative effects” (quote from the local press).
Opinions of residents and university representatives on the need for a new analysis are divided. Some hope that an independent examination will help dispel fears, while others fear that no study will take into account all the risks for young people. Will the new report remain a formal document or lead to real support measures for vulnerable groups?
Current Status of the Project and Change of Partners
Construction of the casino has already started: all necessary state and city permits have been obtained, and a fence has been installed around the former Macy’s. Initially, Lubert’s partner was Bally’s, but in September of last year, it announced its withdrawal from the project due to difficulties in raising funds for other initiatives.
Ira Lubert publicly stated that he has the resources and expertise to complete the project independently without involving external operators. However, the withdrawal of a major partner increased financial and operational risks. The main focus is now on finding new partners and preparing the site for construction work. The opening date has not yet been announced; according to the press, the launch is possible no earlier than the end of 2025.
Why This Is Important for Penn State and the Entire Region
The situation around College Township is unique for Pennsylvania: for the first time, it forces a college town to face a dilemma between economic development and the protection of the youth environment. The proximity of the casino to the Penn State campus raises concerns among parents, students, and faculty, as confirmed by research data from the American Gaming Association.
Experts warn of the risks of a long-term increase in gambling addiction, financial difficulties, as well as the possibility of changing the image of the university and the town as a whole. Local entrepreneurs, on the contrary, see the project as a chance for an economic breakthrough and an expansion of the services market.
As a result, the story of the casino near the campus becomes symbolic for small towns in the US: it demonstrates how complex development decisions require a balance between the interests of investors, residents, and public institutions. What consequences the independent analysis will bring remains to be seen, but the search for a compromise has already become a key challenge for College Township.