Enjoy, a prominent player in the Chilean casino industry, has formally requested the termination of its operating permits for casinos in Coquimbo, Viña del Mar, and Pucón. These permits were granted in 2018 but have become increasingly costly for the company, which is currently undergoing a restructuring process. The news, which was disclosed through Enjoy’s financial statements, has sparked discussions regarding the company’s financial struggles and its efforts to navigate through turbulent times.

Struggling with costs and restructuring:

The request for the license terminations, made on February 24 and 26, 2025, is presently under review by the Superintendence of Gaming Casinos (SJC). This decision comes as part of Enjoy’s ongoing restructuring efforts, marking the second major reorganization in just two years. Enjoy attributed its challenges to several factors, including liquidity issues and the slow post-pandemic recovery, which the company stated was more complicated than originally anticipated.

Enjoy’s decision to request the cancellation of these casino licenses will undoubtedly have a significant impact on the local municipalities, which rely heavily on the revenues generated by these casinos. The company’s move comes in the context of new regulations that allow casinos to request termination of their licenses without the obligation to pay guarantee bonds, offering them a financial reprieve amid ongoing struggles.

The casino operator has been facing considerable financial difficulties, particularly in meeting its growth projections. Despite efforts to revive its operations, Enjoy has struggled with its performance in recent years, leading to the decision to reduce its footprint in the industry. The termination of the three licenses is a direct reflection of these ongoing financial constraints, which have forced Enjoy to reassess its strategy and streamline its operations.

As reported by Diario Financiero, in January 2024, Enjoy announced that it was undertaking another round of restructuring. The company cited several reasons for its inability to meet growth expectations, with liquidity challenges and a more prolonged post-pandemic recovery being among the primary causes. These ongoing difficulties have added to the company’s financial woes, as it works to stabilize its operations and reorient its strategy moving forward.

Legal challenges and collusion allegations:

Beyond the financial strain, Enjoy is also facing legal challenges that add further complexity to its situation. In October 2024, the National Economic Prosecutor’s Office (FNE) filed charges against Enjoy, alongside other major casino operators such as Dreams and Marina del Sol. The FNE accused the companies and several of their senior executives of colluding to secure bidding for operating permits nationwide.

According to the filing submitted to the Tribunal for the Defence of Free Competition (TDLC), the three companies allegedly reached an agreement during the bidding processes for the renewal of their operating permits in 2020 and 2021. Under this arrangement, the companies reportedly agreed to only bid for the renewal of their existing permits, thereby avoiding competitive bidding. This has sparked an investigation into potential antitrust violations and further undermines the reputation of Enjoy as it faces both financial and legal challenges.

Enjoy’s request to terminate its licenses, alongside the legal scrutiny it faces, highlights the broader challenges facing the Chilean casino industry. The company’s restructuring efforts, driven by financial strain and legal complications, reflect the increasingly difficult landscape for casino operators in Chile. With Enjoy’s request currently under review, the future of the three casinos in Coquimbo, Viña del Mar, and Pucón remains uncertain, as does the broader outlook for the industry.

This move also raises questions about the long-term sustainability of the country’s casino operators, particularly those struggling to recover from the impact of the pandemic. As the industry grapples with these challenges, the regulatory environment will play a crucial role in determining the viability of both existing and new casino operations in Chile.