San Martín casino faces potential closure amid reported tax debt

San Martín’s land-based casino in Mendoza Province, Argentina, is reportedly preparing to cease operations as its concessionaire faces significant outstanding tax liabilities to the provincial government.

Entities linked to the operator show substantial debt exposure with the provincial tax authority, including approximately ARS 198m ($188,500) attributed to Fuente Mayor SA, and around ARS 7bn linked to the joint venture Fuente Mayor–New Star. 

The larger figure is currently under judicial appeal. The reported liabilities have raised questions over the financial viability of the venue and its ability to continue operating under its current concession terms.

The potential closure would have employment implications. Around 50 workers are reportedly tied directly to the provincial gaming authority, with more than 100 additional employees working in private roles including security, monitoring and hospitality services. Local reports indicate that contractual provisions may allow the operator to withdraw, although some provincial officials have disputed that interpretation.

Beyond tax exposure, declining weekday attendance has reportedly contributed to operational strain. Sources cited by the outlet indicated that foot traffic is now concentrated primarily on weekends. The casino has reduced its slot machine inventory from approximately 900 units at peak operation to just over 600 machines.

The property operates at the Tótem commercial complex and has functioned in its current configuration for roughly five years, following relocation from downtown San Martín.

The situation highlights the financial pressures facing smaller regional casinos in Argentina, where gaming activity is regulated at the provincial level. Tax structures, concession terms and local demand conditions vary across jurisdictions, creating operational complexity that can materially affect sustainability in lower volume markets.