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Chile – Enjoy presenta demanda contra Sun Dreams por retrasos en casinos

By - 18 agosto 2019

Enjoy has filed a lawsuit before the Tribunal for the Defence of Free Competition (TDLC), against its competitor Sun Dreams, for possible acts of unfair competition.

El conflicto surgió luego de que Enjoy se adjudicara la licencia por 15 años para los casinos de Pucón y Puerto Varas una vez finalizada la licitación de los casinos municipales.

“Fourteen months after that award there is a deep concern that none of these projects, legitimately awarded, has been able to begin construction. And this is not due to causes attributable to our representatives,” said the company in the document put forward to the TDLC.

“The delay is due to the fact that Sun Dreams, a competitor of Enjoy, has developed an organised, repeated and systematic accumulation of judicial, administrative and de facto actions, aimed at taking away from the company the permits that were legitimately granted and, alternatively, to increase the legal and business uncertainty that affects it and its costs, until its operation becomes unfeasible,” the complaint says. “And Sun Dreams has acted in the conviction that the delay in the construction of Enjoy’s projects, in which it is committed, will be enough to drive it out from the market.”
Chile’s casino laws establish a maximum term of two years for operations to begin once the permit has been granted. In this regard, Enjoy says that, although this period is extendable for up to 12 months, regulations do not provide for a possible suspension or postponement by the licensing authority in case of judicial or administrative actions against the awarding of the licence.

As such Enjoy is “the victim of the results of a strategic act,” the company said. Enjoy has asked the TDLC to give Sun Dreams a fine worth around US$12.5m.

In 2018 Sun Dreams, filed two appeals before the Santiago Appeals Court against the Chilean Gaming Board (SJC) through which it seeks to challenge and revert the decision to grant the licence to the casinos of Pucón and Puerto Varas to Enjoy. Sun Dreams argue that the resolutions of the SCJ are illegal.

Según la empresa, Enjoy presentó dos proyectos con criterios técnicos incorrectos, lo que le permitió reducir los costos asociados a ambos proyectos. Según ellos, esto permitió a la empresa presentar mayores previsiones de beneficios, pero iba en contra de las normas de la licitación y otras normas. Esto es importante ya que una vez que se completó la evaluación técnica de la oferta, el postor ganador fue adjudicado a la empresa que ofrecía la oferta financiera más alta.

Caption: The casino in Puerto Varas

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