Three casino operators have criticized Chile's latest tender, arguing that onerous bidding conditions discouraged participation and raised concerns about the country's current model for awarding casino licenses.
Dreams said its board decided not to participate in any of the four tenders after concluding that the technical requirements imposed excessive conditions and did not encourage competition.
For Iquique, the company pointed to an estimated $55m construction investment that would become a non-recoverable sunk cost, as the infrastructure would transfer to the municipality at the end of the license without compensation.
The requirements also included an annual minimum bid of UF 68,000 - Chile's inflation-adjusted unit of account - full employment continuity and additional infrastructure such as a 1,500-seat events hall and 380 parking spaces.
In Viña del Mar, Dreams highlighted a three-month deadline to launch operations, compared with the at least seven months it said a new operator would typically need. The tender also required an annual minimum bid of UF 394,000 and up to UF 120,000 in improvements to Avenida Perú.
Marina del Sol said the outcome confirmed concerns it had previously raised before Chile's Tribunal de Defensa de la Libre Competencia (TDLC) and called for an urgent review of the regulatory framework.
The company contrasted the latest process with the 2005 tender, which it said attracted more than 60 projects, including bids from more than eight foreign operators, and generated around $1.5bn in investment.
Corporación Meier also said the tender conditions reduced incentives for new operators to enter the market. The company said it had raised concerns with the Superintendencia de Casinos, the TDLC and the Fiscalía Nacional Económica, and was notified on August 10 that some of its requests had been rejected, one day before bids were received.
It subsequently filed a new appeal seeking to overturn the decision and refer the matter to Chile's Comptroller General.
Viña del Mar's municipal casino has operated since 1930 and has long been part of the city's tourism offering, while Iquique's casino is located in the Cavancha area, one of the city's main coastal tourism zones
