Experience scorching temperatures during the summer in Pennsylvania, with heat domes enveloping the state in June and July, but activity inside Happy Valley Casino remains chilly.
The Pennsylvania Gaming Control Board (PGCB) disclosed that casino slot machines and table games generated $286.1 million in July gaming revenue, showing a 0.5% increase from the previous year. State gaming, encompassing iGaming and sports betting, surged 6% to nearly $591.1 million.
Gaming profits were generally up in Pennsylvania, except in State College. Happy Valley Casino, situated near Penn State University, has been struggling to attract players.
The $120 million venture, which replaced a former Macy’s anchor store at the Nittany Mall, only brought in $2.5 million in July gross gaming revenue (GGR). Happy Valley ranked at the bottom among Pennsylvania’s 18 casino establishments in July’s monthly earnings.
Gradual Start at Happy Valley
State College, located in Centre County, houses Pennsylvania’s largest college campus: Penn State. State College and the adjacent townships are famously known as Happy Valley.
Throughout the college terms, State College bustles with over 40,000 undergraduates. On college football Saturdays, Penn State turns into the state’s third-largest city, as more than 100,000 Nittany Lion fans fill Beaver Stadium, chanting, “We Are Penn State.”
During the summer, State College shifts into a quieter mode, reflecting on a subdued Happy Valley Casino floor.
Despite its grand opening celebration and free slot incentives, the Category 4 “mini casino” operated by Saratoga Casino Holdings based in New York only amassed $8.5 million from slot and table players in its initial three months. This tied for the smallest earnings among Pennsylvania’s five Category 4 casinos upon opening.
Over half of a casino’s slot profits in Pennsylvania are allocated to taxes.
Saratoga holds a 60% stake in Happy Valley, while SC Gaming LLC, a group of Pennsylvania entrepreneurs spearheaded by Penn State graduate and ex-chair of the university’s board of trustees Ira Lubert, retains the remaining 40%. Lubert secured a casino license for State College with a $10 million bid during Pennsylvania’s Category 4 license auction in September 2020.
Anticipated Seasonal Variations
Seasonal fluctuations were expected at Happy Valley Casino, and property officials state they are adapting the venue based on demand. The casino’s dining spots, Aces Social and Lucky Break Café, have witnessed reduced hours and increased prices.
Nevertheless, employee layoffs have been reported, and General Manager Eric Pearson, dubbed Lubert’s key “casino guy,” left in June.
“As we strive to enhance operational efficiencies and position the business for long-term growth, we are reorganizing several departments and introducing new ones to better fulfill our changing requirements. As part of this restructuring, employees have been given opportunities to transition to roles within these new units. While these adjustments present new opportunities, we have also made the tough decision to eliminate certain positions that no longer align with our organizational structure. These decisions were not taken lightly and reflect the evolving needs of the business,” conveyed Sam Gerrity, CEO of Saratoga Casino Holdings, to the Centre Daily Times in July.