Argentina: Casino de Tigre will be tendered again

The government of the province of Buenos Aires and Trilenium have not reached an agreemtn to keep the casino tender for another 10 years, as the private group wanted, and according to the newspaper El Cronista Comercial, the administration of governor Daniel Scioli decided to put to tender again the casino operation in the town of Tigre.

Owned by a joint venture between Boldt and Sociedad Comercial del Plata (SCP), the firm started operating in 1999 –under the government of Eduardo Duhalde-, and its contract ended in December 2009, after 10 years in force.

At that moment, the company communicated to the Institute of Lottery and Casinos of the Province of Buenos Aires (IPLyC) its aim to continue, so the contract has been extended for another 90 days while a new contract was renegotiated. This deadline has extended in several opportunities, and now it concludes at the end of this month.

Last Thursday, the official entity in charge of the gaming control in the province communicated the owners of the complex another expansion, although just until a new tender is planned. The decision was published in the Resolution Nº 1317/10, where it is said that the measure was taken because an agreement has not been reached on the conditions that guarantee the provision of services, “according to the guidelines demanded by the State of the Province”.

Although the resolution still has to be ratified by the government of the province, official sources mentioned by the newspaper admitted that it will be backed by Scioli, and assured that the tender will seek to “find a new operator”.

Interested parties in competing for the operation of the venue will have to wait to know the documents of the new tender, which still has not a defined date, because the resolution that announces the tender has the exclusiveness of 150 km in favour of Trileium for the time that its management lasts. Official sources explained that the complex will have to continue in Tigre, and Trilenium may try to tender again.

To keep the concession, current operators of Casino de Tigre had stated the damage caused to its business due to the infringement of this clause by the regional institute. According to the company, this infringement “changed the legal frame, mainly referred to the authorizations granted to install bingos with slots, similar to the ones of Casino de Tigre, inside the area of exclusiveness referred in Article 13 of the contract”.

With this situation, the firm presented formal claims before the entity with the aim to achieve the acknowledgement of its problems. But, as they have not received any answers, they made two legal presentations understanding the modification of the rules of the contract, “ a clear violation to the rights of property was produced”.

The complex currently employs 2,000 people, has more than 1,800 slots, 76 table games and two electronic roulettes. In return of continuing with the tender, the companies Boldt-SCP offered an investment plan for us$ 40 million and desist from doing any trial.