On Wednesday, the Pennsylvania Gaming Management Board (PGCB) authorized Cordish Firms’ petition to intervene within the state’s consideration of issuing a Class 4 “mini-casino” license to SC Gaming OpCo, LLC.
The Nittany Mall in State School, Pa., has up to date its wayfinding signage to spotlight a proposed Bally’s on line casino coming to what was previously a Macy’s division retailer. The Pennsylvania Gaming Management Board is ready to contemplate licensing the mission in 2023. (Picture: ABC23)
SC Gaming was based in 2020 by Penn State alumnus Ira Lubert. As a result of Lubert holds a 3% possession place in Rivers On line casino Pittsburgh, the businessman certified to bid in the course of the PGCB’s Class 4 public sale spherical in September 2020. Lubert emerged because the victor with a successful bid of $10,000,101.
Lubert’s provide outbid a separate scheme submitted by Cordish. Lubert has since partnered with the Bally’s Company in proposing a $123 million mission, inclusive of the $10 million licensing charge, to transition the previous Macy’s division retailer on the Nittany Mall close to Penn State College right into a on line casino with as many as 750 slot machines, 30 desk video games, and a sportsbook.
Cordish has raised authorized considerations that Lubert’s successful bid was unjust as a result of he had an settlement in place with Bally’s earlier than the public sale. Bally’s was barred from collaborating within the public sale as a result of the corporate didn’t meet the qualifying standards of already possessing a slot machine license within the commonwealth or being a key investor in an entity that does.
Time Granted
Cordish believes Lubert violated PGCB public sale guidelines by agreeing forward of the bidding to lend his Class 4 mini-casino to license to Bally’s ought to his provide prevail. The Baltimore-based operator of Reside!-branded casinos in Maryland and Pennsylvania filed a petition to intervene with the PGCB in July 2021.
Cordish’s attorneys argued that Lubert didn’t apply for the license by himself, which was in violation of the 2017 amendments to the Pennsylvania Gaming Act that licensed the satellite tv for pc casinos.
“Lubert successfully created an funding automobile with individuals who lack ‘an possession curiosity in a slot machine licensee,’ side-stepping the eligibility necessities. What Lubert did violates the Gaming Act and voided SC Gaming’s utility, vitiating the Board’s authority to even take into account it,” Cordish’s authorized crew argued within the petition earlier than the PGCB.
Cordish — working in Pennsylvania as Stadium On line casino, LLC — has been granted “intervenor standing” and shall be supplied with quarter-hour to deal with the board throughout SC Gaming’s licensing listening to. That listening to will happen someday subsequent 12 months.
At present’s PGCB order, nevertheless, wasn’t a complete success for Cordish. The state opted to disclaim Cordish’s discovery requests proposed within the petition to intervene.
CORRECTION: An earlier model of this text wrongly reported that Cordish’s petition to intervene had been denied. The state solely denied the corporate’s discovery requests.
