While the two ships located in Puerto Madero continue to operate despite the fact that the operation contract expired and has been in litigation since 2020, the debate on the concession has been reactivated and the threat to the continuity of the gambling hall is growing.
According to a report by the media outlet iProfesional, the future is uncertain for the Puerto Madero casino concession, as the Constitution of the Government of the City of Buenos Aires admits two options: the closure of the two gambling halls or nationalization.
Sources from the sector suggest that the owners of the Floating Casino could obtain a “rescue” from the national government itself, which would clearly not support nationalization, through a decree that allows them to continue operating despite having an expired contract.
It should be noted that, from a legal point of view, the national authorities would have their hands tied to extend the agreement or give control of the casino to another gambling company to operate the ships.
For their part, sources from the Buenos Aires City Government explained that the city has no involvement in the matter.
Background
The controversy began in 2019, when the then-Government of Horacio Rodríguez Larreta began a dispute with the casino owners over the continuity of the concession contract.
In that context, the City authorities appealed to the Supreme Court to be able to put an end to the concession, appealing a precautionary measure that the company owning the ship obtained in the courts to prevent the termination of the contract and that the Federal Chamber for Contentious Administrative Matters signed.
The concession contract that the Spanish company Nortia (50%), HAPSA (25%) and Invertclub (25%) had with the National State for the installation and operation of the two ships in Puerto Madero expired in November of that year.
However, before the deadline was met, the company appealed to the Justice system, understanding that, in 2016, the rules of the game had been modified, since, that year, the then president Mauricio Macri together with Rodríguez Larreta, moved forward with the agreement to transfer gambling powers to the City’s jurisdiction.
Response from the unions
The precautionary measure remains in force, although it was appealed by LOTBA in various instances without success, since both in the first and second instance the casino was given the reason. The lottery also elevated a Complaint Appeal to the Court that has been “shelved” in the Administrative Chamber for two years.
Meanwhile, sources from ALEARA, the Gambling Workers Union, warned about the possibility that the Supreme Court’s ruling will go against the contract and anticipated possible mass layoffs on both ships.
According to the union, the company has already reported the dismissal of 20% of the staff, as well as the opening of voluntary retirement plans.
