Penn State Football Season Can’t Come Soon Enough for Struggling Happy Valley Casino

It’s been a brutally hot summer in Pennsylvania, with heat domes baking the state in June and July, but inside the Happy Valley Casino, the action has been cold as ice.

The Pennsylvania Gaming Control Board (PGCB) reports that July gaming revenue for casino slot machines and table games totaled $286.1 million, up 0.5% year-over-year. State gaming, inclusive of iGaming and sports betting, was up 6% to nearly $591.1 million.

Gaming gains were widespread across Pennsylvania, but State College was a notable exception. Happy Valley Casino, located minutes from Penn State University, continued to struggle to attract players.

The $120 million investment, which took the place of a former Macy’s anchor store at the Nittany Mall, reported just $2.5 million in July gross gaming revenue (GGR). Happy Valley ranked last among Pennsylvania’s 18 casino properties in July monthly win.

Happy Valley’s Slow Start

State College is a borough in Centre County that’s home to Pennsylvania’s largest college campus: Penn State. State College and the surrounding townships are affectionately known as Happy Valley.

During the college semesters, State College is a bustling small city, with more than 40,000 undergrads. On college football Saturdays, Penn State is said to be the third-largest city in the commonwealth, as more than 100,000 Nittany Lion fans pack Beaver Stadium to chant, “We Are Penn State.”

During the summer months, State College is much calmer. That’s translated to a quiet Happy Valley Casino floor.

Despite its grand opening fanfare and free slot play incentives, the Category 4 “mini casino” operated by New York-based Saratoga Casino Holdings won just $8.5 million from slot and table players during its first three months. That’s tied for the smallest opening haul among Pennsylvania’s five Category 4 casinos.

More than half of a casino’s slot winnings in Pennsylvania go to taxes.

Saratoga owns 60% of Happy Valley, with SC Gaming LLC, a consortium of Pennsylvania businessmen led by Penn State alumnus and former chair of the university’s board of trustees Ira Lubert, retaining the remaining 40%. Lubert was responsible for bringing a casino to State College with a $10 million bid during the state’s September 2020 auction round for the Category 4 license.

Seasonality Expected

Seasonality was expected at Happy Valley Casino, and officials with the property say they continue to adjust the venue based on demand. Happy Valley’s restaurants, Aces Social and Lucky Break Café, have seen hours trimmed and prices raised.

However, there have already been reports of employee layoffs, and General Manager Eric Pearson, Lubert’s supposed go-to “casino guy,” departed in June.

“As we continue to improve operational efficiencies and position the business for long-term growth, we are restructuring several departments and creating new ones to better support our evolving needs. As part of this process, employees have been offered opportunities to transition into roles within these new departments. While these changes create new opportunities, we also made the difficult decision to eliminate certain positions that no longer align with our organizational structure. These decisions were not made lightly and reflect the evolving needs of the business,” Sam Gerrity, CEO of Saratoga Casino Holdings, told the Centre Daily Times in July.