Cordish Companies has made its challenge to the award of a Category 4 “mini-casino” license official. The operator has filed an appeal with the Pennsylvania Supreme Court challenging the award of the license to SC Gaming OpCo for a casino at the Nittany Mall, near the campus of Pennsylvania State University.
SC Gaming is owned by Ira Lubert, a Penn State alumnus, who is planning the $127 million mini-casino for a former Macy’s anchor store at the mall. It is partnering with Bally’s Corporation, which would build and run the casino.
Stadium Casino, the Cordish Pennsylvania subsidiary that owns two casinos in the state, lost the license to SC Gaming, which bid $10,000, 101 in the state license auction.
The Cordish challenge alleges that the Pennsylvania Gaming Control Board had no legal authority to proceed with Lubert’s casino proposal, because Lubert wrongfully partnered with investors before paying the licensing fee.
Challenges from losing bidders have been commonplace in Pennsylvania’s licensing process since the first casino license was issued in 2006. None has succeeded in overturning a license award. However the gaming board is prohibited from issuing a license when there are open legal challenges to the award. The state’s high court will now decide the issue.
