Reports in local media suggest that Logrand Entertainment, a Mexican gambling group, is considering the acquisition of Chilean casino operator Grupo Enjoy. This move comes after Chile’s Competition Authority, the FNE, blocked Enjoy’s proposed merger with Chilean casino giant Dreams. Enjoy’s major creditors, Euroamerica and Penta Vida, are in favor of selling the company, possibly at a discounted price, following the merger’s rejection.
Merger Blockage and Legal Implications:
Chile’s Competition Authority, the FNE, imposed the block on the Enjoy-Dreams merger, citing concerns that the combined entity would hold more than 75% market share and control roughly 60% of all land-based gaming licenses in Chile. The regulator also alleged collusion among those involved in the deal to achieve favorable outcomes for themselves. As a result of these developments, Dreams CEO Jaime Wilhelm is facing charges of market manipulation and investor fraud.
Strategic Review and Potential Sale:
Grupo Enjoy recently initiated a strategic review that may lead to the sale of its ten casinos located in Chile, Argentina, and Uruguay. The review is being conducted under the guidance of financial advisory firm ASSET Chile SA. Logrand Entertainment’s interest, however, appears to be primarily focused on Enjoy’s Chilean operations.
Logrand’s Operations:
Logrand Entertainment currently operates 14 casinos in Cancun, Guadalajara, and Monterrey, Mexico. The potential acquisition of Enjoy’s Chilean assets could significantly expand its presence in the South American market.
Online Gambling in Chile:
Chile is in the process of liberalizing its online gambling sector, with expected changes to legislation by the end of the year. In the interim, the government has ordered sports bodies to comply with a Supreme Court ruling that deems online gambling illegal. This directive led to the request for the Chilean Football Federation (ANFP) to terminate its sponsorship agreement with Betsson, as the Supreme Court ruled that 23 online gambling operators were working illegally in the country. This situation has created challenges for football clubs with existing contracts with online sports betting operators.
ANFP’s Response:
The ANFP has sought an agreement to protect football clubs amid the changing regulatory landscape. ANFP President Pablo Milad has vowed to challenge the Supreme Court ruling in the Court of Appeals.
Logrand Entertainment’s interest in Grupo Enjoy signals potential developments in the Chilean casino industry, which has been undergoing significant changes due to regulatory actions and legal disputes. The future of Enjoy’s assets, the liberalization of online gambling, and the resolution of legal challenges will likely shape the landscape of the Chilean gambling market in the coming months.