In a groundbreaking move that could set a precedent for antitrust enforcement in Chile, the country’s competition watchdog is seeking record fines against a group of casinos accused of forming a cartel to fix prices and limit competition in the lucrative gambling industry.
The National Economic Prosecutor’s Office (FNE) has announced that it is seeking fines totaling millions of dollars against seven casinos operating in Chile, including industry giants such as Enjoy and Marina del Sol. The FNE alleges that these casinos colluded to fix prices, divide up the market, and manipulate bidding processes for new gambling licenses.
According to the FNE, the cartel operated between 2015 and 2019, during which time the casinos allegedly used a variety of anti-competitive tactics to maintain their dominance in the market. These tactics included coordinating pricing strategies, exchanging sensitive commercial information, and colluding to bid below market value for new licenses.
The FNE’s investigation into the alleged cartel began in 2019, following a tip-off from a whistleblower. The watchdog conducted raids on the offices of several casinos, seizing documents and electronic evidence that reportedly provided conclusive proof of collusion.
If the FNE’s allegations are proven in court, the fines sought against the casinos could be the largest ever imposed for antitrust violations in Chile. The watchdog has requested fines of up to 30% of each casino’s annual revenue, which could amount to tens of millions of dollars for some of the largest operators.
The case has sent shockwaves through the Chilean gambling industry, with many stakeholders expressing concern about the potential impact on competition and consumer choice. Critics argue that the cartel’s anti-competitive behavior may have led to higher prices for consumers and limited options for new entrants to the market.
However, supporters of the FNE’s actions have hailed the watchdog for taking a strong stance against anti-competitive practices in the gambling sector. They argue that the fines sought against the casinos are necessary to deter future cartel behavior and ensure a level playing field for all market participants.
The case is now set to go to court, where the accused casinos will have the opportunity to defend themselves against the FNE’s allegations. If found guilty, the casinos could face not only hefty fines but also potential reputational damage that could have long-term consequences for their business operations in Chile.
As the legal battle unfolds, all eyes will be on the Chilean competition watchdog to see if it can deliver a landmark victory in its fight against anti-competitive practices in the gambling industry. Whatever the outcome, one thing is clear – the stakes are high, and the repercussions of this case could reshape the landscape of the Chilean gambling market for years to come.