Why are hypermarkets in Pennsylvania turning into mini-casinos?
When huge supermarkets lose customers and their halls are filled with silence, there open up opportunities for entirely new, sometimes unexpected, development scenarios. In Pennsylvania, former retail giants are now becoming mini-casinos, changing both the urban landscape and the economy of small towns. Can such changes truly breathe new life into regions? Or will they raise more questions than answers?
What are mini-casinos and how did this concept arise?
Mini-casinos, or satellite casinos, are small gambling establishments that are legally permitted to install up to 750 slot machines and no more than 40 table games. The law on such casinos was adopted in Pennsylvania in 2017 to create a new tax base and support employment in small towns (source: Pennsylvania Gaming Expansion Act No. 42). The state limited the total number of mini-casinos to five across its territory. Such establishments are intended not to compete with large gaming complexes, but to occupy an intermediate niche between big casinos and legalized lotteries.
Large empty stores have become an ideal venue
Enormous retail properties known as Big Box Retail are former supermarkets and chain stores that tenants often leave due to market changes. These premises are even larger in area than many sports halls and most often already have convenient access, well-developed infrastructure, and spacious parking lots. The choice of these properties is due to the possibility of saving on construction and ensuring a quick business start. The existing structure, utilities, and a good location save months of work and millions of dollars in the budget.
For developers, this is a special advantage—the investment in reconstruction is only $20–40 million instead of the potential $100 million for constructing a new building of the same class (according to estimates from investment companies). Reducing costs also shortens the payback period for the project. In a situation where people mostly gamble online, this is especially important. According to twinspinca.com, dozens of popular online casinos offer no-deposit free spins and other bonuses for new and existing clients. If you add to this the convenience and variety of entertainment, land-based casinos are left with not so many competitive advantages. In such circumstances, the number of clients may decrease, and investments begin to pay off much more slowly.
How exactly were hypermarkets transformed into gaming complexes?
The example of Parx Casino in Shippensburg clearly illustrates this trend. On the site of the departed Lowe’s Home Improvement store, which left the retail space in 2018, a mini-casino with an area of almost 6,800 square meters appeared two years later. The establishment placed over 500 slots, about 40 table games, and a sports bar with 100 seats there. Moreover, the owners are using only half of the available space, and expansion options are already being considered (data: Parx Casino, Shippensburg).
Another successful project is Live! Casino Pittsburgh. It opened in 2020 on the site of the former Bon-Ton in the Westmoreland Mall, converting 9,300 square meters into an entertainment zone with a full-fledged gaming hall. Hollywood Casino York, which appeared on the site of Sears in the York Galleria Mall a year later, also retained the existing building shell and infrastructure.
The project in State College on the territory of the former Macy’s at Nittany Mall merits special attention. Although the license to open the new mini-casino was obtained back in 2020, local residents actively voiced protest, citing the potential for increased crime and pressure on the municipal budget.
Additionally, the project was delayed due to legal proceedings between competing companies disputing the compliance with licensing rules. The investor was only able to begin construction in 2024 after the departure of an external partner—Bally’s. The opening of the complex is announced for the first half of 2026.
Advantages and risks for local residents and the economy
Analysts note that such initiatives are able to create new jobs not only inside the gaming halls, but also in related fields—restaurants, service providers, maintenance, and logistics. According to the economic development department, the launch of such a facility can add up to 200 jobs and increase local-level budget revenues by $1–2 million annually. The attractiveness of these transformations for municipalities also lies in the revitalization of unused areas, which usually has a positive effect on the development of small businesses around.
However, residents often express caution, recalling studies that linked the proximity of casinos to increased household offenses and social vulnerability of certain groups. Such opinions are confirmed by the reaction to the project in State College, where members of parental and student communities were especially active. Some experts claim that quick economic gains may be negated by a decline in social stability (according to comments from representatives of public organizations in the media).