Provincial Government Scrutinizes IPJyC: Casino & Gaming Oversight Under the Spotlight

The provincial government of Mendoza is undertaking a sweeping reorganization of its casino and gaming authority, the Instituto Provincial de Juegos y Casinos (IPJyC), following a major fire at the Casino del Este and ongoing financial pressures. The initiative, announced as a legislative proposal on May 8, 2026, grants the IPJyC broad powers to restructure its operations over the next year, aiming to address both labor and financial challenges.

The fire at the Casino del Este, which occurred on March 11, 2026, at the Tótem Boulevard complex, served as the immediate catalyst for the government’s move. The incident forced the closure of the casino’s live gaming operations, exacerbating a decline in revenue that had already been affecting the institution. Governor Alfredo Cornejo’s administration has framed the restructuring as essential to modernizing the IPJyC, ensuring its long-term financial stability and maintaining public trust in the province’s gaming sector.

Central to the proposed reforms is a voluntary retirement plan for a significant portion of the IPJyC’s workforce. Employees who opt for early retirement will receive compensation packages of up to 120% of their final salary, a measure designed to reduce payroll costs and streamline the organization. The government’s plan also includes the elimination of certain operational areas, reassignments of personnel, and adjustments to the salary structure, all aimed at achieving greater efficiency and financial balance.

Beyond labor restructuring, the government is introducing financial incentives to attract new investment and revitalize the province’s gaming industry. The proposed law aligns with broader economic initiatives, such as the Régimen de Incentivo para Medianas Inversiones (RIMI), which seeks to stimulate private investment and economic growth. By refocusing the IPJyC’s mandate and operational model, authorities hope to position Mendoza as a more competitive and sustainable destination for both domestic and international gaming tourism.

While the immediate focus is on addressing the fallout from the Casino del Este fire, the broader goal is to create a more resilient and adaptable gaming authority. The proposed reforms also include measures to enhance transparency and accountability, ensuring that the IPJyC’s operations align with best practices in the industry. The government has emphasized that these changes are not only necessary for financial recovery but also for the continued modernization of Mendoza’s gaming infrastructure.

As the legislative proposal moves forward, stakeholders—including casino operators, employees, and local businesses—will be closely watching its implementation. The success of the restructuring will depend on balancing the needs of the workforce with the financial realities of the gaming sector, all while maintaining the confidence of the public and investors alike.