ith the deal being completed, officials for the combined entity said that it will now focus its attention on introducing operations in the newly opened Brazilian gambling market.
Prior to the merger, Sun International’s portfolio in the region boasted a casino in Chile, Panama, and Colombia. As for Dreams, it operated six gambling venues in Chile and four in Peru. With the proposed consolidation now being approved by South American regulators, it could be said that the merged entity has become the biggest gambling operator in the region.
The gambling group will now operate as many as thirteen casinos with a total of 300 gaming tables and 7,000 slot machines
Sun International has long been looking to combining its Latin American operations with another major player in the region and expand its presence there. Graeme Stephens, CEO of the South African gambling operator, said that they are planning to further expand in Latin America and that Brazil is currently their most desired destination.
The country has recently approved legislation that would allow the establishment of casinos and the introduction of different types of gambling activities, including online ones, within its borders. Here it is important to note that Sun International would likely have to compete with some of the world’s biggest gambling operators for a license and a market share in Brazil.
Stephens said that due to this his company cannot promise that it would secure “the biggest, best, and most obvious casino sites” around the country but that they would do their best to eventually establish operations there.
The official further noted that Mexico is another destination that the combined entity would look to expanding in, although the country is on their long-term radar right now.
Sun International currently holds a 55% stake in the combined entity. When asked about his company’s plans for expansion, Stephens pointed out that South Africa and Latin America are the two regions that are top priority for the gambling group and that they would now focus their attention on their operations there rather on seeking other expansion opportunities in other parts of the world.
The executive also pointed out that Sun International could potentially increase its stake in Dreams at some point in future as it holds pre-emptive rights over a 20% share, which is currently managed by a private equity firm.