Michael Wagman, president of Canadian private equity fund manager Clairvest, is leading the cry among Chilean casino investors who are upset that the government will sell off the next round of gaming licenses to the highest bidders.
According to Games Magazine Brasil, for decades Chile has had a reputation “for seriousness and predictability,” for being “a bastion of economic orthodoxy and pro-business policies in a region known for volatility,” and for offering a favorable business climate for foreign investors. “But that seems to be changing, at least in the casino sector,” the magazine contends.
Clairvest entered Chile more than 10 years ago.
Wagman objects to the new plan by President Sebastian Pinera to auction 15-year concessions to the highest bidder, instead of giving preference to current operators.
Clairvest has joined with four other operators of Chilean casinos to challenge the rules in court and the plaintiffs say they’ll take their case to the World Bank’s International Centre for Settlement of Investment Disputes if their suit against the local regulator doesn’t win them relief.
The government is “not even close to sending the message that Chile is a safe place to do business,” said Wagman, spokesman for the group.
According to Bloomberg, Clairvest, which owns a stake in casino operator Marina del Sol, has put on hold potential new investments in other industries in the country after investing $380 million in Chilean casinos over the last 10 years. In 2019 the industry had about $670 million in gross revenue, according to government figures. Chile opened its casino industry in 2005 to private operators.
