Casino Enterprise Management

There have been some major developments in the Latin American market of late. The government of Ecuador has closed all the casinos in the country. There is the looming spectre of nationalization in Argentina. Corruption scandals linked to the gaming industry are once again making headlines in Brazil. And in Mexico, a deadly attack on a casino in Monterrey continues to have wide repercussions nationwide. So what else can we expect in this rapidly evolving market?

Perhaps the most significant development for operators could be some major changes on the way in Argentina, or more specifically, in the province of Buenos Aires. Rumors of nationalization first began to surface in June 2012 with an article in daily newspaper, Clarin. Citing sources close to the government, the article argued that President Cristina Fernández de Kirchner was looking into the possibility of nationalization as a means of bolstering her popularity and cutting any remaining links between her administration and the gaming industry in Buenos Aires. Later articles supported these findings, with one local insider going as far as to say that the government was looking into ways of nationalizing the casino industry throughout Argentina.  

Events, however, took a surprising turn in July, when governor of the province of Buenos Aires, Daniel Scioli, signed a decree that granted extensions of 14 bingo licenses until 2027. In Argentina, state workers receive two annual bonuses a month. Due to the present economic crisis in the province, Scioli was unable to pay the first instalment and, in the face of a number of all out strikes, he turned to the gaming industry for extra funding. The announcement was met with immediate criticism from the Kirchner camp. Relations between Scioli and Kirchner have become increasingly strained, especially since Scioli announced that he would run for president in 2015.

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