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Argentina: Neuquén mandates hotel investments

Argentina's province of Neuquén has signed a decree overhauling its casino concession framework, requiring operators to fund tourism infrastructure worth millions of dollars as a condition for renewed licenses.

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Neuquen
Key Points
Casino Magic Neuquén will see its gross revenue tax rate rise from 2% to 3%, while the provincial take on physical gaming operations climbs from 15% to 17.5% of net win, calculated on a monthly basis rather than annually
The concessions were granted to three firms: Rima, Hotelera Emprender and Casino Magic Neuquén

The Government of Neuquén signed a decree this weekend restructuring the concession framework for all casino operators in the province, raising tax rates and making hotel construction a binding condition for license renewals.

The decree, signed by the acting Governor Zulma Reina and Economy Minister Guillermo Koenig, formalizes agreements reached between the provincial gaming regulator, the Instituto Provincial de Juegos de Azar del Neuquén (IJAN), and the three concessionaires.

The move is part of a broader policy to eliminate preferential treatment in state contracts.

According to the local newspaper Río Negro, official sources said that the review process for the extension requests ensured equal conditions and objective evaluation criteria, stressing that the move was not an automatic renewal of concession terms but rather a newly enacted assessment process.

The sources added that the measure forms part of what the provincial government describes as the “end of privileges,” citing recent changes involving the Chapelco Ski Resort concession, cuts to motocross world championship contributions and the elimination of privileged pension schemes in the province.

The investment obligations are tied to specific locations. Casino Magic Neuquén will invest $15m in a four-star, 80-room hotel adjacent to its existing gaming floor in the provincial capital. Hotelera Emprender will build an apart-hotel complex of over 1,000 square meters in Chos Malal, in the province's northern corridor, for $2.43m. Rima will purchase and renovate the Hotel Alfa in Cutral-Có, bringing it to three-star status with 42 rooms, at $2.58m. 

The provincial road agency projects completion of most related highway works between 2026 and 2027, aligned with the investment deadlines set for operators.

Good to know

Under the previous framework, Casino Magic Neuquén was exempt from the stamp tax on its concession contract. The new decree eliminates that exemption, putting the operator on equal footing with other commercial activities in the province

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