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Chile – Court overrules decision over Puerto Varas licence

By - 21 April 2022

Enjoy has won its appeal over the revocation of its casino licence in Puerto Varas.  In a unanimous decision in March The Chilean Gaming Board (SJC) revoked Enjoy’s licence after it failed to meet its obligations to build the approved integral casino project within the term established by law.  SJC inspectors verified on the ground that the project had not yet been constructed and submitted its findings to its resolution council on February 2, 2022, which then made its decision

However as it was entitled to do under law Enjoy appealed to the Court of Appeals of Santiago, and asked that the derogation of its permit be annulled as it was “unjustified and illegal.” The Court of Appeals agreed.

In the brief presented by lawyer representing Enjoy Jorge Barrera stated that the resolution council, “has decided to ignore the concurrence of facts that prove a non-culpable breach in relation to the development of the integral project” by the casino.

According to Barrera, the casino did all it could to develop the project, “but the illegal action of the Municipal Works Directorate (DOM) of Puerto Varas” made this impossible.  

Enjoy was granted the fifteen year licence in 2018 but had faced a large number of obstacles in getting work on the project off the ground including failure to obtain planning permission. In June 2021 Enjoy asked the SJC to nullify up to US$12m in guarantees for its Puerto Varas licence. The company said that it had not waived the operating permit but had faced a number of unforeseen obstacles which had made the opening of the casino within the agreed timeframe impossible.

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