Electrical fault suspected in Mendoza casino fire as lawmakers probe tax debts

Authorities in Argentina’s Mendoza province are focusing on a possible electrical failure connected to solar panel screens as the likely cause of the fire that destroyed the gaming floor at Casino de Mendoza Sala Este in San Martín earlier this week.

The incident occurred on March 11 and left the gaming area of the venue, operated by Grupo Kristich, with what local authorities described as total material losses.

Local media reports indicate investigators are examining an electrical malfunction in the system connecting solar panels at the property. While the inquiry remains ongoing, the theory has emerged as the leading explanation for the blaze.

The fire also unfolded against the backdrop of growing political scrutiny over the operator’s financial situation.

Days before the incident, Senator Félix González filed formal information requests asking Mendoza’s Executive branch to confirm whether the concession holders of the casino carried outstanding debts with the provincial tax authority, Administración Tributaria Mendoza (ATM). The request asked for details on the size of the liabilities, the status of any collection proceedings and whether the Instituto Provincial de Juegos y Casinos (IPJyC) had been formally notified.

Félix González, Senator, said: “It is essential for this Chamber to understand the exact conditions under which this concession was granted.”

According to local reports, ATM confirmed that Grupo Kristich holds tax debts with the province and has submitted a repayment plan, though authorities declined to disclose the amount owed.

Separately, Provincial Deputy Jorge Difonso and colleague Rolando Scanio presented a proposal requesting a broader breakdown of tax debts across all privately operated gaming halls in Mendoza.

Jorge Difonso, Provincial Deputy, said: “The level of indebtedness can lead to subsequent problems due to possible closures of these companies.”

The concession for Casino de Mendoza Sala Este was granted to Grupo Kristich in 2021 through Resolution 369/21 issued by the IPJyC. The operator has also faced criticism for not delivering a hotel project that formed part of the original concession agreement.