Chilean media is reporting that Mexican gambling company Logrand Entertainment is considering buying casino chain Grupo Enjoy. It is assumed that Logrand will be able to acquire the Chilean operator’s facilities at a reduced price.
Enjoy’s biggest creditors, the Euroamerica and Penta Vida funds are backing the sale after a failed attempt to merge the Chilean casino group with its main market rival Grupo Dreams SA. Back in April, Chile’s Competition Authority (FNE) prevented the merger of these companies. If successful, the combined gaming group would have gained a monopoly in Chile with a market share of over 75% and approximately 60% of land-based licenses.
Last month, Grupo Enjoy announced the start of a strategic review that could lead to the sale of ten establishments in Chile, Argentina and Uruguay. The group’s board informed the Chilean Financial Markets Commission (CMF) that the review was being conducted by financial advisory agency ASSET Chile SA.
Enjoy owns inseven casino hotels in Chile, as well as properties in Mendoza, Argentina, and the Enjoy Punta del Este casino resort in Uruguay. However, Logrand Entertainment, which operates 14 casinos in Cancun, Guadalajara and Monterrey, is only interested in the Chilean properties.
Logrand is looking to expand its presence in South America beyond Mexico, competing with market players such as Grupo Caliente MX and Big Bola Casinos. If the acquisition of the Grupo Enjoy chain happens, the Mexican operator could gain control of 40% of Chile’s casino market share.
Meanwhile, the state is preparing to legalize online gambling by the end of this year. The government is still working on the relevant bill, and currently iGaming is illegal in Chile.
Of note: International Entertainment is investing a billion in a casino resort project in Manila.