Chile’s Superintendence of Gambling Casinos (SCJ) reported this Wednesday that the tenders for casino operations in Iquique and Viña del Mar ended with no proposals. In Coquimbo and Pucón, each location received only one project. After the result, the companies Marina del Sol and Dreams criticized the conditions set out in the tender.
According to the SCJ, the offers were submitted by Casino de Juegos de Coquimbo S.A. and Casino Volcán Pucón S.A. For the other two cities, the regulatory body will have to open new processes and redefine the special conditions of the technical bases. The evaluation of the proposals received in Coquimbo and Pucón begins now and will have a maximum period of 120 days.
Marina del Sol points to lack of competition
Marina del Sol said that the low participation confirms the warnings it had made about the design of the process. The company said that the scarcity of bidders in Pucón, Coquimbo, Viña del Mar and Iquique shows, in its assessment, a lack of effective competition.
The company also said the result reflects structural problems in the bidding model adopted since 2015 and defended a review of the regulatory framework and the awarding mechanisms. For the company, changes could generate processes with greater participation by operators.
Dreams questions conditions for Iquique and Viña del Mar
Dreams said the requirements of the tender documents were excessively burdensome and unjustified, which would have discouraged participation. In the case of Iquique, the company cited the rule that provided for the transfer of the works to the municipality at the end of the concession, without the right to compensation. According to the operator, the condition turns the investments into a sunk cost.
Regarding Viña del Mar, Dreams questioned the combination of economic and investment obligations. The minimum bid was 394,000 UF per year, in addition to the complete improvement of Avenida Perú, with an investment of up to 120,000 UF. The tender documents also required maintaining 100% of the staff.
Next steps
Coquimbo and Pucón move forward to the evaluation of the proposals, even without competition among bidders in each location. Iquique and Viña del Mar will need new procedures, in which the SCJ will have to review the special conditions before a new call. The criticism from Marina del Sol and Dreams brings into debate the balance among economic obligations, investments, and competitiveness in the Chilean system.
