Local government officials outraged after Enjoy relinquishes licenses
The news that Enjoy has requested the resignation of its operating permits in Coquimbo, Viña del Mar, and Pucón has been met with dismay and outrage by local government officials who fear that it will cause irreparable harm to municipal finances. The three permits are not due to expire until 2036 and 2037.
However, regulations have been amended to permit casinos to request the termination of their licenses without the requirement to pay guarantee bonds. Enjoy stands to gain from relinquishing its operating permits, as this decision enables the company to eliminate the licenses of the casinos that incur the highest expenses. Enjoy’s request is currently under review by the Superintendence of Gaming Casinos (SJC).
In response, the municipality of the coastal city of Viña del Mar stated that it “categorically rejects Enjoy’s decision to abandon its operation license in our commune, especially in the context of a series of accusations that undermine trust in the industry.”
They added that “this situation would negatively impact municipal revenues that fund social initiatives and key projects for the city’s development, as well as being a direct detriment to the public treasury, which would also affect numerous workers and their families . . . We demand that the relevant authorities, who hold this decision, do the right thing and decline the company’s casino request.”
Councillor Nancy Díaz told local newspaper La Estrella de Valparaíso that Enjoy’s resignation of its licenses in Viña del Mar, Coquimbo, and Pucón amid collusion investigations “is a serious blow to transparency and business ethics in Chile.”
“This scandal not only affects confidence in the casino industry but also harms the communities that depend on these revenues for their development,” she added.
Similarly, Councillor Alejandro Aguilera, chairman of the Municipal Finance Committee, argued that “our guaranteed economic offer for a period of 15 years amounts to approximately $22 billion annually, which represents a serious detriment if the suspension or cessation of the public bidding is approved.”
Councillor Andrés Solar also reacted to the news. “The situation at the Casino of Viña del Mar is extremely concerning. It’s a real earthquake for the public finances, as we remember that casino revenues are among the most significant income sources for the municipality. During the pandemic, we ceased to receive these revenues, resulting in a substantial municipal debt that has not yet been fully paid,” said Solar.
In January 2024 Enjoy, announced that it was undergoing another restructuring, the second in just two years. Enjoy cited a series of reasons for not reaching its growth projections, including “liquidity constraints and the slow post-pandemic recovery, which had greater complexities than initially anticipated.”
In addition in October The National Economic Prosecutor’s Office (FNE) accused Dreams, Enjoy, and Marina del Sol, along with five of their senior executives, of colluding to secure bidding for operating permits nationwide. In a filing submitted to the Tribunal for the Defence of Free Competition (TDLC) the FNE specified that for the bidding processes conducted by the SCJ in 2020 and 2021, the companies agreed that each would bid for the renewal of the permits they already held at that time. These allegations have been strongly denied.
