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October 26, 2020

Largest gambling operator in the region

Sun Dreams pockets USD 150M loan for Latin America expansion

Sun Dreams pockets USD 150M loan for Latin America expansion
Newly created Latin American casino operator Sun Dreams has agreed to the terms and conditions proposed by several local financial institutions for a USD150M loan the company said it would use to support its expansion across the region.
Chile | 11/01/2016

Newly created Latin American casino operator Sun Dreams has agreed to the terms and conditions proposed by several local financial institutions for a USD150M loan the company said it would use to support its expansion across the region.

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un Dreams was established earlier this year as a result from the merger of South African casino operator Sun International and its Chilean counterpart Dreams SA. The deal was sealed after the two companies had received the necessary approvals from the relevant gambling regulators in Chile and Panama.

The merger created the largest gambling operator in Latin America. Sun Dreams, as the combined entity was called, currently manages 13 gambling venues across four countries, with those featuring around 6,650 slot machines and 300 gaming tables.

The company will reportedly use the $150 million it has borrowed from BBVA, BCI, Banco de Chile and Banco Estado to refinance current liabilities, extend its debt’s term from 4 to 10 years, and release collateral to secure the loan. T

he endeavor is believed to help the casino operator boost its finances in order to be able to proceed with expansion projects

Sun International and Dreams have pointed out that they were planning to invest more than $300 million in expansion across different Latin American jurisdictions, Peru being their priority for the immediate future. The company currently operates four gambling venues in Lima.

According to local media, there have been ongoing talks for the construction of a casino resort in the country’s capital

Brazil and Chile will be the other two markets Sun Dreams will be targeting in future, although the company itself has previously noted that the situation in both jurisdictions would not allow them to proceed with their expansion plans as quickly as they wished.

Brazil is yet to open its gambling market to international operators. Once this happens, it is believed that Sun Dreams will have to compete with some of the leaders in the global gambling industry for a casino license in a country with population of more than 200 million people and immense opportunities for gambling operators to conduct profitable businesses.

As for Chile, the country’s gambling industry has not been experiencing its best times, but Sun Dreams apparently sees potential in the local market and is expected to bid for more licenses there. The country’s Gaming Board is expected to launch a tender process for interested operators in 2017.

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