An impact study has led to a decision by the government of Mendoza, in Argentina’s Cuyo region, not to renew the licenses of three casinos in the province because of their failure to meet the gaming board’s objectives.
After talks with three city’s mayors and the chamber of commerce, the decision was made not to pick up the renewal option on August 24 for casinos in the cities of Eugenio Bustos, Uspallata, and La Consulta. The decision, which was confirmed by Josefina Canale, the President of the Provincial Institute of Games and Casinos, is based on a study that was conducted to determine what impact the casinos were having on their respective communities.
According to Canale, not only had the three state casinos not met with the objectives put into place by the authorities, which was to raise revenues and attract tourists, they were instead losing money, according to the latest data compiled by the local gaming board. And instead of attracting tourists from other countries or provinces, were drawing locals, as determined by the impact study.
On Friday, June 24, Canale, confirmed to the local press that, “After paying prizes and costs they (the casinos) produced a loss,” and said that the three casinos gaming licenses will not be renewed when they expire on August 24, according to a G3 Newswire report. She also noted that two additional casinos located in the cities of Tunuyán and Tupungato, whose licenses are set to expire in March 2017, could face a similar fate. While nothing is official yet, it is believed, however, that the two privately run casinos currently operating in the black, will not close.
In other Argentine news, last year the government made the decision to take control over all gaming related activities beginning this year and in doing so decided that it would not renew the National Lottery’s four-year contract with Argentina’s capital city, which was initially completed in 2003. The contract had an automatic renewal policy for an additional four-year period unless and until either the Lottery or the government decided to stop the agreement and make changes. And in a series of measures on the government’s part to further control and monitor gaming, the government of Buenos Aires issued a new decree last month which will mandate that operators publish the financial results of their gambling venues online.