Operator News
Argentina – Argentine officials confident of favourable ruling in Casinos Austria case
By Phil - 2 October 2019
Local lawmakers have expressed their optimism that an international court will rule in their favour ending a long running dispute and saving the government of Salta millions of dollars.
The claim put forward by Casinos Austria before the International Centre for Settlement of Investment Disputes at the World Bank (ICSID), is due to be settled soon. An adverse arbitration ruling could take US$62m from provincial coffers and 75 per cent of the general budget of the provincial capital.
However, governor of the province Juan Manuel Urtubey and State Prosecutor Pamela Calletti said that they were confident of a favourable ruling during an interview with local radio after the hearing took place earlier this month in Paris. The court was set up to settle the dispute and heard witnesses and experts for two weeks at the European headquarters of the ICSID.
Ms. Calletti accompanied the General Treasury of the Nation officials, who represented Argentina at the hearing.
The official said that the final submissions had to be submitted in writing before December 15. On that day the court composed of Belgian Hans Van Houtte (president), German Stephan Schill (proposed by the plaintiff) and Santiago Torres Bernárdez from Spain (nominated by the Argentine team) will begin to work on the decision that could be announced in the last days of December or at the beginning of 2020.
The announcement should bring to an end a long running dispute. In February 2016 it was announced that Casinos Austria was to take Argentina and the province of Salta to the ICSID at the World Bank over the revocation of its licence. The company initially demanded payment of US$200m in compensation.
According to the complaint lodged with the courts Argentina had to submit evidence to substantiate the charges before an international tribunal over “claims arising out of the revocation of a license to operate games of chance and lottery held by claimant’s local subsidiary under alleged concerns of money laundering.”
Casinos Austria International had been present in Salta since December 2006 when the company acquired a majority interest in Leisure & Entertainment (L&E) a company that owned 90 per cent of the shares of gaming company Enjasa. Enjasa was given the exclusive right to run gaming in the province after gaming was privatised in Salta in 1998.
Under a deal which was agreed to in October 2013 it was agreed that Casinos Austria would own 100 per cent of Leisure and Entertainment SA – Enjasa’s mother company. Casinos Austria agreed to the deal after discussions with the local government of Salta and agreeing to promote tourism and the entertainment sector in the province.
However, in August 2013 then Minister of Economy, Carlos Parodi announced that the company’s license would be revoked due to apparent breeches in anti-money laundering standards. Governor Juan Manuel Urtubey revoked the company’s contract by decree in 2013. After the revocation Enjasa’s license gambling in the province of Salta was split amongst several operators. The new contracts, lasting 10 years, were approved in May 2014.
