Plans to develop a new gaming venue at the site of Necochea's historic Casino Complex, in Argentina, have raised questions over how much of its revenue would remain with the municipality.
Under the revenue-sharing formula established by Buenos Aires Provincial Law 11,536, just 2% of gross gaming revenue would go to the municipality, while 62% would be allocated to the province's gambling regulator.
The law also allocates 20% of gross gaming revenue to Buenos Aires municipalities without their own casinos, 6% to a social program fund, 5% to a provincial education fund and 5% to the province's general treasury, leaving the remaining 2% for the host municipality.
For every ARS 2 ($0.0013) that Necochea would receive, the IPLyC would collect ARS 62.
The distribution has drawn renewed attention after the municipality sold land from the Complejo Casino site. The main parcels were awarded to A Toda Vela Mar SA, the sole bidder at a June 10 auction, for ARS 4.878bn. The buyer's project reportedly includes a hotel, dining venue and new gaming hall, though a casino reopening is not yet confirmed and would require provincial authorization.
A casino generating ARS 100m in monthly gross gaming revenue would send ARS 62m to the IPLyC and ARS 2m to Necochea, according to the reported breakdown.
The discussion also comes as Buenos Aires province separately advances a proposed 2% levy on certain online betting prizes, with estimated monthly collection of between ARS 35bn and ARS 40bn, part of a wider push to raise gambling-related revenue alongside continued blocking of unauthorized betting sites.
A separate parcel at the site housing the historic Teatro Auditórium is scheduled for its own auction
