Argentina: Mendoza orders reorganization of provincial gaming institute

Mendoza has enacted a law ordering the reorganization of the Instituto Provincial de Juegos y Casinos (IPJyC), the provincial regulator for gaming and casinos.

The law gives the institute one year to modify its organizational structure, functions and job titles. 

It aims to achieve financial equilibrium and ensure the institute's long-term sustainability, as part of a broader modernization push by the provincial executive.

To support the restructuring, the legislation temporarily suspends certain budget restrictions and authorizes the provincial government to make financial contributions needed to keep the institute operating during the reorganization period.

The law also sets out a framework for staff affected by the changes. Employees will be able to opt into a voluntary retirement program offering compensation equal to 120% of the severance payment set by current law. 

The measure also allows for relocation within the provincial public administration or, where that is not possible, termination with the corresponding legal severance. Coverage under the OSEP provincial health plan will continue for terminated employees and their families under the conditions set by the law.

The law follows a restructuring bill introduced by the provincial government in May, which warned that underperforming casino halls could be closed as part of the overhaul. 

At the time, provincial officials said live table games were generating less than 30% of their operating costs, making them the segment most vulnerable to restructuring, while stressing that the objective was to redirect resources toward public services such as healthcare.

Treasury and Finance Minister Víctor Fayad said: "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."