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Mendoza regulator to cover wage gap after San Martín casino fire

Provincial Instituto de Juegos y Casinos will use internal reserves to offset lost gaming revenue and protect April salaries across its network following the destruction of the venue.

2 min read
MDZ2
Key Points
Mendoza’s regulator will use its own funds to offset lost revenue after the fire
Around 500 employees across the provincial casino network could have seen reduced April wages

Two weeks after a fire destroyed the gaming hall at the Casino de Mendoza annex in San Martín, the province’s Instituto de Juegos y Casinos has confirmed it will use internal reserves to cover the revenue shortfall that would otherwise impact employee salaries across its casino network.

The blaze broke out on March 11 at the Tótem Boulevard complex, causing total losses to the gaming floor. The venue is one of the largest state-run casinos in Mendoza. A private security worker told authorities the fire appears to have originated from an electrical fault in the building’s solar panel system. Several individuals were treated for minor injuries and smoke inhalation, while two people were rescued from the roof.

The San Martín site employed 110 workers, including 50 public employees under the Instituto and 60 staff from Grupo Kristich, the private concessionaire. While the regulator has guaranteed job continuity and relocation for its own staff, responsibility for the remaining workers lies with the operator.

The financial impact extends beyond the affected venue. Casino workers in Mendoza receive a portion of their salaries linked to gaming revenue through the so-called “fondo estímulo.” With the San Martín casino out of operation, this component of April salaries for approximately 500 employees across the province was at risk.

To prevent wage reductions, the Instituto will absorb the missing revenue using its own funds. Union sources have raised concerns about potential salary impacts, although the regulator has reiterated that payments will be maintained in full.

Behind the scenes, authorities are conducting a financial assessment to determine the size of the shortfall and how resources will be allocated. The situation adds pressure to the Instituto, which is also required to allocate 25% of gross gaming revenue to mental health and addiction programs under current provincial regulations.

Reopening of the San Martín casino remains uncertain, as a judicial investigation into the cause of the fire is ongoing and will determine the next steps.

Good to know

Grupo Kristich, the private concessionaire at the San Martín site, has previously faced scrutiny from provincial lawmakers over alleged tax debts, adding further pressure to the post-fire recovery process

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