Two Chilean casino operators have asked the country's competition tribunal to suspend a tender process covering four casino concessions.
They argue the bidding terms restrict competition and could impose high costs if concessions are awarded before their objections are resolved.
Marina del Sol and Dreams filed the request with the Tribunal de Defensa de la Libre Competencia (TDLC), asking the body to pause the process run by the Superintendencia de Casinos de Juego (SCJ) for the casinos of Iquique, Viña del Mar, Pucón and Coquimbo, all of which are currently accepting bids.
The request forms part of a non-contentious proceeding opened in late May after Marina del Sol challenged several aspects of the bidding rules. The TDLC recently lifted the temporary suspension on the Viña del Mar tender while allowing the proceeding to continue and opened a new period for submissions, during which Dreams formally joined the case.
The law firm Pellegrini & Rencoret, representing Dreams, argued that a suspension would allow the tribunal to reach a decision that is effective and workable, avoiding a scenario where concessions are awarded before it rules on the objections.
The companies say a suspension would not affect acquired rights or completed stages of the process and would avoid the high costs of reversing 15-year concessions once awarded.
They also argue it would not harm the SCJ or the municipalities involved, since current operators would continue running the venues under the existing terms.
Regarding Iquique, the operators object to a requirement to hand over the property at the end of the concession without compensation, a requirement to hire 100% of the outgoing operator's gaming staff and an obligation to carry out predefined infrastructure works unrelated to casino operations.
For Coquimbo, they object to high minimum investment requirements and a clause granting the municipality an irrevocable option to purchase the property at a price to be determined later.
The TDLC will now evaluate the request and decide whether to suspend the tender while it reviews the substance of the complaints. The tribunal has not announced when it expects to rule on the matter.
Enjoy currently operates the casinos in Viña del Mar, Pucón and Coquimbo, while Dreams holds the concession in Iquique
