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Chile – Court accepts Sun Dreams’ appeal over Pucón licence

By - 7 September 2018

The legal dispute over the recently awarded municipal casino licences will now continue after an important decision made by a top court in Chile.

The Santiago Appeals Court has accepted the appeal put forward by Sun Dreams against the Chilean Gaming Board (SJC) through which it seeks to challenge and reverse the decision to grant the licence to the casino of Pucón to Enjoy. Robert Gillmore Landon, sponsor of the legal action on behalf of Sun Dreams stated that there were “wrongly delivered records” during the licensing process.

The ministers belonging to the Fourth Chamber of the Court of Appeals of Santiago declared the claim admissible in the case of Pucón and requested a report from the head of the SJC, Vivien Villagrán Acuña, within a term of 10 days starting from Monday, September 3.

The appeal had come as no surprise for Enjoy. In August, Enjoy said that its rival’s appeal had been expected as the tender process allows companies to appeal the initial decision if they disagree. General Manager of Enjoy, Gerardo Cood told press that the company would have probably done the same if the decision had not gone their way. If the decision is granted then it could mean that the tender could be launched again. Even if this does happen, Enjoy says it still expects to be awarded the licence.

In August Sun Dreams, filed two appeals before court regarding the decision to grant the licence to the casinos of Pucón and Puerto Varas to rival Enjoy.

Sun Dreams argue that the resolutions of the SCJ are illegal. According to the company, Enjoy presented two projects with incorrect technical criteria, which allowed the company to reduce the costs associated with both projects. This, they argue, allowed the company to put forward greater profit forecasts but went against the rules of the tender and other regulations. This is significant as once the technical bid evaluation was completed then the winning bidder was awarded to the company offering the highest financial bid.

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