Published: September 26, 2023, 06:45h.
Last Updated: September 26, 2023, 06:45h.
The failed merger attempt between casino operators Enjoy and Dreams in Chile has left Enjoy uncertain about its future. The merger was called off due to allegations of market manipulation, but a Mexican company may step in to turn things around.
In April, Enjoy and Dreams, the two largest casino operators in Chile, abandoned their plans to merge after objections from the National Economic Prosecutor and an investigation into potential collusion. Following this, Enjoy began exploring new business opportunities and enlisted Asset Chile to find potential buyers or alliances to improve its finances.
A Mexican company, Logrand Entertainment Group, which operates casinos and an online casino platform in Mexico, is reportedly interested in acquiring Enjoy. However, Logrand only wants certain assets, meaning a separate sales process would be necessary for Enjoy’s operations in Uruguay.
Transforming Chilean Gaming
Logrand Entertainment Group, known for its Paradise brand, is in early discussions to acquire Enjoy’s Chilean operations. Logrand operates several casinos across Mexico and has a sponsorship deal with LaLiga through its online casino platform, Strendus.
Logrand is a conglomerate with a presence in multiple states in Mexico, operating a dozen gaming properties and sports bars in several casinos.
If the deal progresses, Logrand would solely focus on Enjoy’s operations in Chile, potentially leaving its assets in Uruguay in a separate negotiation with a new buyer.
While details of the negotiations remain undisclosed, Logrand and Enjoy have not confirmed or commented on the potential deal.
Enjoy Loses Ground
Following a financial reorganization in 2022, Enjoy is now controlled by creditors. Euroamerica is its largest shareholder with a 15.25% stake as of June 2023, followed by Penta Vida with 11.66%.
In the first half of the year, Enjoy reported losses of CLP38.64 billion (US$42.73 million), higher than the previous year’s CLP26.06 billion (US$28.82 million). The decline was attributed to lower EBITDA, income tax effects, and deferred taxes.
Despite the losses, Enjoy’s income increased by 8.26% to CLP165.7 billion (US$18.32 million) due to the lifting of COVID-19 restrictions on casinos and hotels in Chile and Uruguay.
As a result, Enjoy’s Chilean operations saw a 14% growth, while its Uruguayan business unit in Punta del Este experienced a 4% decline. Overall, revenue between January and June was 21% higher than in 2019, before the pandemic.
In terms of revenue, Enjoy held a 37% market share in Chile in the first half of the year, slightly behind Dreams with 39%. However, during the second quarter, Enjoy’s market share rose to 40% compared to 37% for its main rival.