Enjoy and Dreams Merger will not be a piece of cake

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After the region’s two largest operators, Enjoy and Dreams, announced their merger, Latin American gambling regulators are working against a monopolistic regime.

Regulators are paying attention to the properties the new company will own and come up with an appropriate system of anti-monopoly rules before new post-merger operations begin.

Enjoy, and the Dreams monopoly is a “non-issue”.

However, after the Enjoy merger, the newly formed entity is unlikely or a “non-issue” for single player dominance in the region’s gaming industry due to market controls and regulations already in place. square.

The merging companies claim that the casinos are “legal monopolies in Chile”. Indeed, only one permit is issued in a region. Therefore, the scenario so far is that there are no competing entities in play in the region.

At the same time, both merging companies are aware of the size of the significant properties owned by Enjoy and the number of casinos controlled by Dreams.

Thus, they drew up a merger plan which they submitted to the national economic prosecutor’s office. The new company proposes to sell its properties so that “monopolistic” problems do not arise.

If regulatory pressure increases to cut staff, the companies are offering to sell Enjoy Santiago Hotel and Casino to Rinconada.

Price control laws are already in place to control the monopoly

According to Enjoy and Dreams, strict price limits are already in place in Chile.

The law allows an operator to keep less than 15% of profits and return 85% to punters.

Keeping this rule as a guideline, Enjoy and Dreams announced that they would only retain “around 6% and 7%” since the government agency, the FNE can request that a “pre-integration level” be maintained.

Market control will continue despite the merger

Under current proposals, the merger will result in companies owning 15 gaming properties between them. Before the pandemic, Dreams and Enjoy held 58% of operating licenses and 74% of gross revenue in the gaming industry.

The merged company will be called -Enjoy- and will control almost 60% of the casino market in Chile. The list of operators under the new group name would consist of eight Peru-based casino operators, one operator from Panama and one operator each from Uruguay, Colombia and Argentina.

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