Legislation

Argentina – Supreme Court rules in favour of city in floating casino dispute

By Phil - 30 November 2015

The Supreme Court of Justice of the Nation has ruled that it is the government of the City of Buenos Aires, which should have control over the operation of casinos operating in their district after reversing an injunction ordered by a Federal Appeals Court.

The new ruling overturns the injunction which had ordered that the city government should not interfere when it came to the activities carried out on the “floating casinos” the “Princess” and “Star of Fortune” as well as land adjacent to the mooring of those ships run by companies Casinos de Buenos Aires S.A and Compañía de Inversiones en Entretenimientos.

The court case began after both companies claimed that it should be police forces run by the city government and not federal police which should be in charge of security. However the appeals court ordered that the city government could only be responsible for the monitoring of building safety and could not interfere when it came to the activities of the casinos.

However, the Supreme Court ruled in favour of the city by referring to an earlier decision made in 2011 which held that city government control over the gaming had been recognised in the third clause of the agreement between the National Lottery and the Institute of Games and Gambling of the City. That agreement provided that the Institute had jurisdiction, along with other authorities of the City, to verify that the concessionaires of the National Lottery were exploiting the casinos located on the ships “Princess” and “Star of Fortune” – and were in full compliance with local regulations.
The court also pointed out that there had not been a conflict of federal and city powers as assumed by the appeals court but rather there had been a lack of coordination between both in relation to the operation of existing gaming halls and that the vessels did not not violate any provision of the constitution.

The decision finally resolves the long running dispute over the two “floating casinos” moored permanently alongside each other to the city harbour downtown and could finally open the door to allow the city the right to tax gaming in Buenos Aires. The establishment of casinos within the city has long been a divisive and controversial issue with both the city government and the national government vying for control over gaming. While mayor Mauricio Macri tried to reach an agreement whereby casinos located in the city would pay back a long standing a debt of between $1.5bn pesos and $2bn pesos in gross gaming back taxes to the city no agreement was reached during his term in office.