A 2007 report by the Auditor General of the City of Buenos Aires states that the City’s Institute of Gambling did a "discretionary use" of its budgetary allocation.

That year the agency did not execute their funds "respecting" the distribution prepared by the Administration of the City Government. In fact, the 2007 budget included $ 2,298,790 in regards to paragraph 1 "personnel expenses", but the AGCBA says the amount "was ultimately not used," adding that "all expenditures, including salaries and health/retirement costs, were paid from funds appropriated to Item 5 'Transfers'." The accrued expenses in 2007 amounted to $7,757,993.”

The report adds that the use of the corresponding item for the Institute involves a "breach of the established rules."

Moreover, in the same work, drawn on data from 2007 and approved this year, the Audit notes that although the Institute published quarterly in the Official Gazette revenues perceived by the City for each type of game, "it does not specify the destination of the proceeds," in breach of the provisions of Act 538 which regulates everything regarding recreational gambling activities.

And although today, "the Institute is in charge of the management of funds, the lack of diffusion generates a partial noncompliance," this was determined by the City Watchdog.

In turn, the audit noted that the Department responsible for the legality of recreational facilities did not execute the audits according to the guidelines of the planned quarterly distribution because "they did not meet (those) tasks during November and December," the period analyzed.

It is estimated that the Institute for the last quarter of 2007 would carry out 1,200 controls, however because they surpassed that number with 4000 verifications, they decided to discontinue their work in the last few months.

The AGCBA also noted that the Verifications Department of the Institute "develops its tasks based on a manual of procedures that are not formally approved by resolution" of the entity.

This Agency is under the aegis of the Executive Department of Management and Games and Marketing, and as of December 2007, the Department of Prevention and Gambling Guidance. Previously the detection and prevention sector worked directly under the President of the Institute.

The Audit defines "compulsive gambling as a behavior disorder considered a disease that affects the inhibitions of the person" and to assist the community in these cases it "requires continuous advertising campaigns and with great distribution in order to achieve their goals.”

However, the AGCBA found that since the Department of Prevention "didn’t execute advertising campaigns related to compulsive gambling during the second half of 2007."
 
This led to a "significant decline in the use of the (phone) line 0-800," which informs and helps those who suffer from this disease. Between September and December the telephone service "only received 46 calls from the 215 recorded that year."

According to the Audit, "while the Institute applies a gambler assistance program, such procedures are not formalized," and added that this "makes the delineation of responsibilities difficult, creating weaknesses in the control of the tasks performed."

The Institute of Gambling is in charge of the organization, administration, regulation, operation, collection, and control of all gambling in the City of Buenos Aires. It was created by Act 916 in 2002, which also established the conclusion of an agreement with the National Lottery. The agreement was signed the following year in order to agree the terms associated with the participation of each of the jurisdictions they represent on the money derived from the marketing betting games within the City of Buenos Aires. It was approved by Act 1182.

The report explains that "although procedures and controls reasonably designed identified to promote efficiency and effectiveness of operations related to the application of Law 1182 Convention, the revenue control is done with a procedures manual from 2004 that “is out of date.”

For the Audit this situation "undermines the system of internal control," even considering that in 2007 the Institute saw $124,625,405 for the games under Act 1182.