Mendoza's state casinos lose over 40% of their profit
The felt tables at Casino Central de Mendoza generated enough revenue to cover only 29 percent of the payroll for those who staffed them. The difference was covered by other areas of the Provincial Institute of Games and Casinos (IPJyC), and this imbalance explains why, in early August, on the 5th, the organization closed Juego Vivo, its traditional games sector, and placed 82 employees on six-month availability.
The comparison with slot machines is stark. In July, the last full month with the tables open, electronic machines contributed AR$1,099m to the state network, about US$716,000, compared to just AR$45.6m from the felt tables, slightly less than US$30,000. In August, with the tables operating for only five days, the felt tables contributed AR$6.6m.
The biggest hole, however, was created by a fire. The fire on March 11 put Casino Zona Este, the San Martín venue, out of service. This casino generated about a third, 33 percent, of the revenue from state-owned slot machines. In January, it had produced AR$783.6m and in February AR$654.5m, equivalent to US$510,489 and US$426,384; in the few days it was open in March, it added AR$289.3m. It has not reopened since April.
The result is a 40.4 percent decline. Official data from the Public Information Access System and Gaming Observatory (SAPIA), processed by the newspaper Los Andes, show that Casino Central, Casino Zona Este, and Casino de General Alvear together averaged AR$1,785m in monthly profit in the first two months, about US$1.1m, with AR$1,892m in January and AR$1,678m in February. Between April and August, without the eastern venue, that average dropped to AR$1,064m, about US$693,160, and August ended around AR$1,056m. March was excluded from the calculation due to the fire.
The Institute maintains that losing that venue accelerated an adjustment it was already studying due to the transformation of the business, with the growth of digital platforms and the loss of ground for some in-person modalities. The legal basis is Law 9,718, sanctioned in July, which enabled voluntary departures, internal transfers or transfers to other public dependencies, and the placement of employees on availability.
The retirement plan offers 120 percent compensation over what would be due for severance and is open for applications until September 30. Out of approximately 460 workers, the Union of Casino Gaming Personnel of Mendoza (UPJCM) counts about 105 interested and estimates that this number could exceed 120. In that scenario, the workforce would shrink by about 26 percent, leaving around 340 people. The final figure will only be available in early October.
The IPJyC is both a regulator and an operator: it oversees gambling in the province and directly manages its state-owned casinos, while other venues operate under private concession. Mendoza is one of the Argentine jurisdictions that has authorized online gambling with private licensees, and the organization itself links the shift of players to this channel with the diminishing importance of its land-based venues.
Tags: Provincial Institute of Games and Casinos, Mendoza State Casinos, Casino Zona Este, Law 9,718