International edition
June 25, 2021

The group could be held liable for a USD 200 M debt over unfinished works

Casino operator Enjoy at odds with Chilean regulator over contract breaches

Casino operator Enjoy at odds with Chilean regulator over contract breaches
The leading casino operator in Chile has brought forward several proposals and actions that must be solved yet, so the government has not issued a final decision.
Chile | 01/20/2021

Enjoy’s relationship with local authorities is growing tense as Superintendencia de Casinos de Juego (SCJ) officials have rejected the group’s request for an extension for the development of four municipals casinos, whose licenses were granted in 2018. The firm is at risk of losing these licenses and may have to pay up to USD 200 M in lost insurance policies and surety bonds. "If that were the case, we would have no choice but to file for bankruptcy."

O

n December 24, Enjoy submitted an “appeal for protection” requesting that the gaming regulator SCJ grant the group at least 180 additional days to finish building four properties in Viña del Mar, Coquimbo, Pucón, and Puerto Varas, respectively. It also requested that the licenses not be revoked once the legal deadlines expire.

On December 30, the court rejected an “Injunction Against Further Moves” and on January 6, the company appealed that decision, which was once again rejected last week. The most complicated legal situation for the company is related to the casino in Viña del Mar, since this property should be operational before January 30, and that deadline is still in force after the rejection of the "Injunction Against Further Moves".

According to court records, the firm is at risk of losing its casino licenses and may have to pay up to USD 200 M in lost insurance policies and surety bonds. "If that were the case, we would have no choice but to file for bankruptcy," company officials said.

Another document that belongs to the SCJ and to which Yogonet had access, shows that Enjoy’s "appeal for protection" failed to be submitted in a timely manner and the SCJ has no power to extend the legal deadlines.

Despite all of this, the leading Chilean casino operator remains confident that authorities will take the necessary steps to mitigate the serious impact the tourism and gaming industries have suffered as a consequence of the global pandemic, local newspaper La Tercera reports.

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