Enjoy and Dreams Merger Will Not Be a Cakewalk

Enjoy and Dreams Merger Will Not Be a Cakewalk

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

The regulators are watchful about the properties that the new company will possess and propose a proper anti-monopoly rule system before the new operations begin after the merger.

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

However, after the merger Enjoy, the newly formed entity is unlikely or a “non-issue” for single-player domination in the region’s gambling industry because of the market controls and regulations already in place.

The merging companies claim that casinos are “legal monopolies in Chile.” This is because only one permit is issued in one region. Hence, the scenario until now is that there are no competing entities in play in the region.

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

Hence, they have drawn a merger plan which they have placed before the national Economic Prosecutors Office. The new company proposes to sell its properties such that “monopolistic” issues do not arise.

If the regulatory pressure increases to downsize, the companies propose selling Enjoy Santiago  Hotel and Casino in Rinconada.

Pricing Control laws are already in place to control monopoly

According to Enjoy and Dreams, stringent pricing limits are already in place in Chile.

The law allows an operator to retain less than15% of the profits and return 85% to the bettors.

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

Control of the market will continue despite the merger

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

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

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.