The Lottery of Córdoba conducted the openings of envelopes 1 and 2 of the bidding process.
Argentina.- The competition for the renewal of the gaming system in Córdoba is defined. The tender promoted by the Lotería de Córdoba for the operation of casinos, slot machines, and the construction of new hotels is in its final stage with CET and Casino Victoria as the two companies with the highest chances of being awarded. Boldt is in third place in the contest.
Yesterday, Tuesday, March 11, the Lottery of Córdoba announced the economic merit order resulting from the bidding for the concession of casinos in the province, after a process that included the opening of envelopes 1 and 2, as well as an extension in the deadlines for improving the offers. Bidders still have the opportunity to present challenges in the coming days.
The report from the Lottery of Córdoba details the investment proposals of the bidders in Alta Gracia, Río Ceballos, Cruz del Eje, and the tourist rings of Punilla. Also for the casinos of Embalse, Mina Clavero, Miramar, Almafuerte, San Francisco, and Villa María.
The idea of the provincial government headed by Martín Llayora was that all casinos, except for the one in Villa Carlos Paz, would pass into private hands in March. It was also anticipated that from 2027 the slot machine market, a monopoly controlled by CET since 2003, would be dismantled. However, the proposals for the gaming rooms were scarce, although there was interest in hotel and building investments.
In Alta Gracia, CET leads with a total investment of AR$3.250.000.000 (USD3m). In Río Ceballos, Casino Victoria proposes a strong building investment of AR$16.296.211.580 (USD15m), complemented by an investment in equipment of AR$31.799.873.513 (USD29m) and a monetary fee of AR$4.623.750 (USD4339). CET also presented a proposal with a total investment of AR$1.252.300.000 (USD1.1m). In Cruz del Eje, CET stands out with a total investment of AR$418.700.000 (USD392.953). Regarding the Cruz del Eje room, it faces strong resistance from a sector of residents led by the Church who met with the mayor. According to the local newspaper La Voz, “the harsh criticisms of Monsignor Ángel Rossi about the policy of promoting gambling that the provincial government embodies” struck a chord, and therefore, “it will soon be announced that the hotel that CET owes will have to be built in Cruz del Eje and that it will not have casino or slot rooms”.
Regarding the Tourist Ring (Carlos Paz Costanera – Cosquín – La Falda), CET proposes a building investment of AR$2.000.000.000 (USD1.8m); while in the Tourist Ring (Embalse – Mina Clavero – Miramar – Almafuerte – San Francisco – Villa María), Boldt (San Francisco) presents a building investment of AR$3.240.000.000 (USD3m), along with an investment in equipment of AR$500.000.000 (USD469.254). CET did not present an investment in this area.
In the Federal Ring (Carlos Paz Centro – Cruz Alta), CET proposed a building investment of AR$1.900.000.000 (USD1.7m); Casino Victoria offered a building investment of AR$538.175.000 (USD505.081), an investment in equipment of AR$21.049.473.828 (USD19m) and a monetary fee of AR$2.311.875 (USD2.169), specifically for the Carlos Paz Centro room.
Finally, in the Federal Ring (Corral de Bustos, Gral. Roca, Laboulaye, Morteros, and Río Cuarto), Boldt (C. de Bustos) proposes a building investment of AR$1.296.000.000,00 (USD1.2m) and an investment in equipment of AR$329.000.000 (USD308.769), CET, on the other hand, presents a building investment of AR$100.000.000.
Regarding investments in dollars, it was revealed that, regarding the total investment in the entertainment system, Casino Victoria (2 rooms) leads with a building investment of USD16.383.831 and an investment in equipment of USD51.434.888. CET (all rooms) proposes a building investment of USD4.789.294.
Total investment in Alta Gracia/Cruz del Eje/Río Ceballos: Casino Victoria leads with a building investment of USD15.860.060 and an investment in equipment of USD30.948.782. CET presents a building investment of USD4.789.294.
Total investment in Trunk Ring: Boldt stands out with a building investment of USD4.414.599 and an investment in equipment of USD806.813. CET does not present a building investment in this area.
With the publication of this order of merit, a period opens in which bidders can present the challenges they consider necessary. These challenges could alter the current order of merit and, therefore, influence the final awarding of the casino concessions in the province. The Lottery of Córdoba will have to carefully evaluate each challenge before making a final decision.
According to the local media La Voz, for the rooms in the towns of Mina Clavero, Embalse, Miramar, Almafuerte, and Villa María there were no interested parties; while for those located in Río Cuarto, Cruz Alta, General Roca, Laboulaye, and Morteros, the only offer was from the company CET, which proposed an investment of AR$100m for the cluster of casinos, so that line of the tender could remain deserted.
Now, those 10 casinos will remain in the hands of the Lottery, until an alternative is found. In contrast, in San Francisco, Corral de Bustos, and Río Ceballos, Boldt and Casino Victoria will begin to operate, respectively. To take charge of the slots in those rooms, the new concessionaires will have to wait until 2027, when CET leaves the exploitation.
The newspaper from Córdoba reported that until 2027 there will be a “coexistence” between the new awardees, Casino Victoria and Boldt, who will begin to operate the casinos that are granted to them in concession, in the coming weeks, while CET will remain with the slots in the 18 rooms.
In the case of those casinos that will continue to be managed by the Lottery, there will be no changes for now. It emerges as a big question what will happen with the 10 rooms that were not of interest to the private sector once the current concession ends, in 2027.
Sources from the Lottery of Córdoba indicated to La Voz that the game of slots and cloth continues to be profitable and that there is a decision to “not unprotected” the heritage of the company that controls the State.
As the new concession will begin in 2027, there are several months ahead to define a business strategy in the 10 rooms. The paths are a new call for tenders, exploitation with an associated third party, own exploitation, or the closure of unprofitable rooms.
