Argentinian lawmakers have expressed confidence that they will prevail in their legal battle with Casinos Austria, in a ruling due by December or January. Casinos Austria took the jurisdiction including the province of Salta to arbitration in February 2016, after its license to operate gaming in the country was revoked.
Casinos Austria initially demanded US$200 million in compensation, then opted to seek an arbitration ruling under the International Center for Settlement of Investment Disputes (ICSID) at the World Bank.
According to the complaint lodged with the courts, Argentina submitted 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.”
According to CDC Gaming Reports, Casinos Austria International had a presence in Salta since December 2006 when the company acquired a majority interest in Leisure & Entertainment (L&E), a company that owned 90 percent of the shares of gaming company Enjasa. Enjasa was given the exclusive right to run gaming in the province after the sector was privatized in 1998.
Under a 2013 deal, Casinos Austria acquired 100 percent of Leisure and Entertainment SA, Enjasa’s parent. But Governor Juan Manuel Urtubey revoked the company’s contract by decree in 2013 based on money laundering concerns, and allowed several other operators to run gaming in the province.
If Casinos Austria wins, Salta may have to pay US$62 million in damages, but Urtubey and State Prosecutor Pamela Calletti said during a recent radio interview that they are confident of a win.
