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Chile: Ex-Dreams casino union leader investigated for misuse of funds

Chilean prosecutors are investigating a former union president at Dreams casinos over the alleged misuse of workers’ dues.

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Chile: Ex-Dreams casino union leader investigated for misuse of funds
Key Points
Authorities are probing the alleged diversion of CLP 80m in union funds
The case is under review by the local Guarantee Court

Chilean prosecutors confirmed the opening of a criminal investigation into Mónica Castro Canales, former president of the workers’ union at Dreams casinos in Temuco and Coyhaique.

The misappropriation is alleged to be CLP 80m ($90,612) in union membership dues.

The probe is being led by the Economic Crimes Unit of the Araucanía branch of the Public Prosecutor’s Office after the local Guarantee Court admitted a criminal complaint filed by union members. 

Authorities are seeking to determine the destination of funds collected through monthly dues that are currently unaccounted for.

Luis Torres, an Economic Crimes Prosecutor, said investigators had requested multiple measures from the Economic Crimes Brigade of the Investigative Police of Chile to trace the alleged diversion of funds and establish individual responsibilities.

Castro previously served as president of the intercompany workers’ union at Sun Dreams Temuco, representing employees across Dreams’ casino operations in Temuco and Coyhaique. Her leadership role placed her in charge of administering union finances, including the collection and management of member contributions. 

According to the complaint, the alleged misappropriation occurred over an extended period, although prosecutors have not yet defined a precise timeline.

Among the evidence under review is a letter sent by Castro to union members in August 2025, in which she apologized and acknowledged having used union funds. In the message, she stated that the money had been allocated to assist colleagues facing difficult personal situations, a claim now being assessed by investigators.

Despite no longer holding a union leadership position, Castro currently works as an administrative employee in the security department at Dreams’ Temuco casino. The company has not issued public comments regarding the investigation.

The case has renewed scrutiny over governance and financial controls within casino employee unions in Chile, which rely on regular member fees but operate with limited external oversight. Prosecutors will now evaluate whether the collected evidence supports formal criminal charges.

Good to know

Under Chilean law, union leaders who manage membership dues can face criminal charges for misappropriation of funds even if the money was not used for personal gain, if it was spent outside the organization’s statutory purposes

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