for early access to the latest igaming videos!
and get the latest igaming news first!
The Municipality of Montevideo (Intendencia de Montevideo – IM) has been obliged to renew its current contract with ICM S.A. due to the failure of two consecutive public tenders regarding the operation of the Parque Hotel Casino. The two tenders, one concerning the lease of slot machines and another concerning the lease of casino management software, were declared null and void due to a lack of interested companies.
To address this issue, the Municipality of Montevideo authorized a three-month extension of the current contract with ICM S.A. on January 26. This extension refers to the lease of slot machines, with a cost of 6,536,068 Uruguayan Pesos. At the same time, a payment of $82,350 (corresponding to 3,115,000 Pesos) was authorized regarding the lease of casino operating software, due to the fact that “the previous tender for this service had also been declared deserted.”
According to municipal authorities, the decision was justified by the “need to keep the gaming room operational” while a longer-term solution is evaluated.
Repeated Failures to Attract Bidders
The first tender, initiated in late 2024, was designed to lease between 100 and 150 new slot machines for a four-year period. Since there were no companies that offered bids, it was decided to modify the terms of the tender, allowing up to half of the machines to be used rather than brand new ones. The second tender was also unsuccessful, with no bids received from companies.
Mounting Losses and Political Pressure
The casino has incurred substantial losses, with losses of 83 million pesos incurred in the year 2024 alone. The mounting losses have come under scrutiny by opposition lawmakers, with some of them going on record stating that the casino should be closed down permanently.
The mounting losses have only served to emphasize the fact that the casino is no longer an asset to the local government. In the year 2023, the deficit was estimated to be nearly 90 million pesos.
Planned Transfer to National Government
As the casino continues to experience mounting losses, the Municipality of Montevideo announced its plans to transfer the management of the Parque Hotel Casino to the General Directorate of Casinos (Dirección General de Casinos), which falls under the Ministry of Economy and Finance (MEF). In this regard, Camilo Benítez, the Director of Economic Development at the MEF, recently announced plans for the casino to be transferred to the national government by mid-2026.
This has been underscored by the fact that the casino has not been factored into the budget of the Municipality of Montevideo starting in 2028. The plans to transfer the casino were welcomed by the Mayor of Montevideo, Mario Bergara, who stated that the aim was to dispose of an asset that incurred losses, such as the estimated loss of 90 million pesos incurred by the casino in the year 2023.
The future of the Parque Hotel Casino remains uncertain as the plans to transfer the management of the casino to the national government are finalized, with the casino management on one side and the local government on the other side trying to come to an agreement on the way forward.
Source: SBC Noticias
