Uruguay court allows new evidence casino lawsuit against state

A Uruguayan appeals court has allowed private casino operator Vidaplan to introduce new evidence in its $25m lawsuit against the General Directorate of Casinos (DGC), overturning a prior ruling and reopening proceedings in a case that has been ongoing since 2020.

The First Civil Court of Appeals reversed a decision by Fabiana Weisz Collazo, concluding that the new facts presented by Vidaplan meet the legal criteria under Article 121.2 of the General Procedural Code, as they are subsequent to the initial filing, relevant to the dispute and potentially consequential to the claim.

The additional evidence centers on the fire that impacted Punta Shopping between 2022 and 2023, which led to a partial closure of the complex while the state-run casino operating within it remained active. Vidaplan argues that the post-fire period revealed a clearer competitive dynamic between Casino Nogaró, which it previously operated, and the Punta Shopping venue, with diverging revenue performance supporting its claim of unfair competition.

Vidaplan has also alleged substantial financial harm stemming from the perceived competitive imbalance, citing declining revenues, sustained operating costs, and losses linked to lower visitor traffic at Casino Nogaró.

According to the company, these conditions ultimately rendered the operation increasingly unviable after its agreement with the state collapsed.

The lawsuit originated after the DGC terminated its sublease agreement with Vidaplan in 2020. The operator alleges that the state subsequently pursued a commercial strategy designed to favor its own casino operations, a characterization the DGC has rejected, maintaining that no direct competition exists between public and private operators.

The appeals court did not rule on the case itself and sent it back to a lower court for further proceedings, leaving the outcome open.