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Mendoza restructuring bill could lead to casino hall closures

Argentina's Mendoza province has sent a restructuring bill to the legislature that could result in the closure of underperforming casino halls, with workers facing potential reassignment.

2 min read
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Key Points
The provincial government’s bill proposes restructuring Mendoza’s gaming authority and other state entities, citing low profitability across several business units
Live table games are generating less than 30% of their operating costs, making them the most vulnerable segment under the proposed restructuring

The government of Argentina’s Mendoza has submitted a legislative package that includes a restructuring of the province’s gaming authority, a move that could lead to the closure of underperforming casino halls and the reassignment of workers.

The proposal was presented to the provincial legislature by Treasury and Finance Minister Víctor Fayad during a joint session of three legislative committees. The bill also includes Mendoza’s adherence to the Regime of Incentives for Medium-sized Investments (RIMI).

Fayad appeared alongside Ida López to outline the scope of the restructuring and its potential impact on public employees connected to the province’s gaming operations.

Fayad said: "All of that led us to rethink the different structures of the Institute and to promote a realignment of those that today generate revenue for the province, which are resources directed primarily to the health system, and to eliminate those that no longer do."

Fayad acknowledged that specific hall closures have not yet been decided but did not rule them out. He identified live table games as a particular pressure point, noting that the segment "with the income it generates does not even cover 30% of its costs," which in turn reduces the resources available for healthcare funding. 

The restructuring also puts several hundred workers in a position of uncertainty. The minister confirmed that talks with the Unión del Personal de Juegos y Casinos are ongoing and outlined the likely path for affected staff.

Fayad added: "Naturally, when the State stops fulfilling certain functions or certain units stop making sense, the Public Employee Statute clearly establishes what to do in those situations." 

He stated that the majority of employees would be reassigned and that some would opt for voluntary separation, while others would move to a status of availability under current regulations. 

To prepare for the transition, the government held back all vacancies generated through retirement, resignation or death during January, February and March of this year, reserving those posts for workers displaced by the restructuring.

Good to know

The San Martín hall fire, which left one of the province's gaming venues damaged, is cited in the government's rationale as an additional factor behind the decision to reassess the casino network's structure

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