Chilean Casino Giants Accused of Rigging Bids in Licensing Scandal

The Chilean National Economic Prosecutor’s Office (FNE) has taken legal action against major casino operators. Dreams, Enjoy, and Marina del Sol face accusations of collusion in recent casino licensing bids.

The FNE filed a complaint with the Competition Tribunal, targeting these companies and five top executives. The alleged collusion affected casino license auctions held by the Superintendency of Gambling Casinos in 2020 and 2021.

An anonymous tip-off in February 2022 sparked the investigation into the lack of competition among the operators. The complaint revealed suspiciously low bids from the companies for their main gaming halls.

The operators allegedly submitted economic offers below 1% of their average annual gross gaming revenue. This figure was based on their 2018-2019 earnings for the same casinos.

The FNE claims the companies agreed to bid only for renewing their existing permits without facing competition. Jorge Grunberg, the National Economic Prosecutor, explained the impact of this alleged collusion.

He stated that it allowed the operators to renew their 15-year casino licenses at much lower prices. These prices fell far below what a competitive process would have ensured.

The FNE has requested record-breaking fines for the accused companies in this collusion case. Dreams face the highest proposed penalty at approximately $112.4 million.

Enjoy follows with a suggested fine of nearly $36.8 million. This case highlights concerns about fair competition in Chile’s casino industry.

It raises questions about the integrity of the licensing process and its economic impact. The outcome of this legal action could reshape the landscape of casino operations in the country.