Pennsylvania’s fifth mini-casino faces potential delay

Cordish has sued to try to stop the state board from awarding a licence for the mini-casino.
Cordish has sued to try to stop the state board from awarding a licence for the mini-casino.

A lawsuit lodged by the Cordish Group may delay Pennsylvania’s fifth mini-casino.

US.- Progress on a fifth mini-casino in Pennsylvania is being held up due to a lawsuit brought by the losing bidder in the tender. Questions have been raised over whether or not the winning bid met the criteria set by the regulator, the Pennsylvania Gaming Control Board.

Private investor Ira Lubert, in partnership with Bally’s Corp, won the tender with their bid to open a mini-casino at a former Macy’s at the Nittany Mall in College Township, Centre County. However, Baltimore-based Cordish Companies, which operate in Pennsylvania as Stadium Gaming LLC and run the Live! Philadelphia hotel-casino and the Live! Pittsburgh casino, sued Lubert.

The suit filed on Cordish’s behalf by attorney Mark Aronchick alleged that Lubert’s bid should be voided because he partnered with other private individuals who themselves would have been ineligible to bid. It also alleges that he used money from these individuals to help pay the $10m he owed the state.

It states that Lubert’s creation of State College Gaming to apply and pay for the licence is against the rules. Therefore the license should go to the next highest bidder, which, while unconfirmed, is most likely the Cordish Company.

The suit states: “This fact alone requires the board to set aside Lubert’s bid and award the right to apply for a Category 4 license to Stadium Casino.”

The other individuals identified as Lubert’s partners in SC Gaming are Robert Poole and Richard Sokolov. Bally’s was announced as a business partner January 2021 to run sports betting and iGaming at the casino.

A Commonwealth Court hearing was scheduled for March 7, but there’s no clear date when a ruling will come. The Pennsylvania Gaming Control Board has denied that there is any connection between the lawsuit and the fact that a licence has yet to be granted to the Lubert group.

See also: Pennsylvania sets new state record for gaming revenue in March

In this article:
Pennsylvania Pennsylvania Gaming Control Board