Legislation
Argentina – Casinos close in Salta after dispute deepens
By Phil - 25 November 2013
The continuing dispute between the government of Salta and gaming company, ENJASA has meant that casinos and lottery outlets have suspended their operations.
The company was dealt another blow last week when the regulatory gaming body denied the motion for reconsideration filed by ENJASA to continue managing raffles, lotteries, bingos, slot machines and casinos. After the decision ENJASA decided to shut down their casinos and lottery offices temporarily in order to avoid a possible fine. The situation has led to a great deal of uncertainty regarding the future of gaming in the province and has not only affected casinos but local lottery games as well with lottery customers forming lines outside lottery points of sale in order to collect refunds.
After gaming was privatised in Salta in 1998, ENJASA was given the exclusive right to run gaming in the province. In December 2006, Casinos Austria International strengthened its cooperation with ENJASA acquiring a majority stake in Leisure & Entertainment – a company that owns 90 per cent of ENJASA’s shares. Under a new deal which was agreed to in October Casinos Austria would own 100 per cent of Leisure and Entertainment SA – ENJASA’s mother company.
However, in August this year Minister of Economy, Carlos Parodi announced that ENJASA’s license, which it has held since 2000, would be revoked due to apparent breeches in anti-money laundering standards. These allegations have been denied and the company responded with an administrative appeal and an appeal to the local courts. The latest appeal was rejected last week meaning that the company’s licence has, to all intents and purposes, finally been revoked.
For now there has been no official word as to the fate of gaming in the province although Labour Minister Eduardo Costello told press that the government would ensure that no gaming jobs would be lost. Meanwhile, according to member of the regulatory gaming body, Silvina Cainelli casinos and lottery outlets will open to the public once again before the end of the month. Despite this the future of gaming in the province looks increasingly uncertain and there have been no announcements as to exactly how gaming will be regulated in the long term.
