Carlos Cardoen, owner of the Colchagua casino, chose to stay out of the scandal although he said he hoped the situation would be resolved soon.
Chile.- The spotlight remains on the Chilean gaming industry after the complaint by the FNE against Dreams, Enjoy, Marina del Sol, and against five senior executives of these companies accusing them of having colluded to affect the outcome of the casino tenders in 2020 and 2021.
The businessman Carlos Cardoen, owner of the Santa Cruz hotel and the Colchagua casino, the gambling complex closest to Monticello and, therefore, one of its most direct competitors, spoke about the requirement presented by the National Economic Prosecutor's Office (FNE) and said: “I have respect for our competition, but we have never been involved in any of the situations that are attributed to the other casinos. Moreover, we have not been informed of any non-compliance”.
Cardoen expressed in statements to the local media La Tercera: “We are observers regarding this. We have had no relationship with Enjoy for a long time, because after being invited to be partners with 40 percent, due to the economic vicissitudes that Enjoy faced, we were offered the sale of 40 percent of the Colchagua casino. We exercised that proposal and bought the 40 percent. Today we have no relationship with Enjoy or its partners”.
On the other hand, he chose to stay out of the scandal by explaining: “It is very important in this life to be clear about not getting involved in what does not concern me. I have a lot of respect for the industry and for the other casinos. I don't know if this situation is closed, because often in this country people are condemned when they are accused, but not when their crimes have been proven”, he asserted to La Tercera, although, he slipped in a criticism: “I regret what is happening, because in the sector we have tried to maintain it as a sector of order and cleanliness and being involved in this, harms”.
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Finally, he clarified that his company does not belong to any guild or association that brings them together with other companies in the sector. “I hope this is resolved and that the situation is well understood”, he added.
Another repercussion of the FNE's presentation was reflected in the stock market. According to reports, Enjoy's shares fell more than 10 percent just on Friday after the information was released.
Enjoy issued a statement in which it expressed: “We regret and reject that the self-report by a third party involves Enjoy S.A. in acts of collusion in which it has had no involvement”.
On the other hand, Dreams stated in its letter: “As a company we regret being involved in this process while always operating with strict ethical standards and prevention models” and states that “it rejects any accusation that undermines free competition and practices contrary to a healthy development of the industry”.
In this line, from Dreams they also noted that they oppose “any malpractice that contravenes the guidelines of the board, which has always mandated competing in the tenders and acting in accordance with the legal framework in all its processes”.
Finally, Dreams assured that it collaborated in the investigation, providing the “available background” and that, in this new stage before the Tribunal for the Defense of Free Competition (TDLC) “will assert all its means of defense” in order for the tribunal to dismiss the FNE's requirement.
Enjoy also reiterated its commitment to the communities in which it operates and noted that its tender processes follow strict standards. “Enjoy S.A. has strict internal standards that govern the tender processes in which it participates, always aligned with the regulations and regulatory frameworks established”, it added.
The Minister of Economy of Chile, Nicolás Grau, spoke with the local media Radio Bío Bío and referred to the FNE's requirement and stated that the Prosecutor's Office presented “very good background”.
Moreover, he explained: “The FNE is suggesting that there was coordination among three companies to see who would go to the different tenders. The consequence is that less is collected for the State and the regional institutions that receive resources from these casinos. What one expects in a tender is that by being competitive they have to deliver as rents to the State the maximum that was compatible with the development of their business, and what happens is that they are delivering less because they coordinated to avoid this mechanism of competition. This is extremely serious. The collusion could even entail criminal consequences, once the process that is now underway is finished”.
