Gaming regulators have approved South Africa-based Sun International’s merger of its Latin American portfolio with that of Chile-based Dreams, resulting in the largest gaming company in Latin America. Sun International owns Monticello Grand Casino in Chile, the Ocean Club Casino in Panama and the Sun Nao Casino in Colombia. Dreams owns Iquique, Temuco, Valdivia, Puerto Varas, Coyhaique and Punta Arenas casinos in Chile, and four in Lima, Peru. Altogether, the new company will have 13 casinos, with a total of 7,000 slot machines and 300 table games.
Sun International raised the debt for the expansion from BCI, BBVA, Santander and Itau-Corpbanca banks in Chile. “This is a huge vote of confidence in our ability to consolidate, grow and expand further into the region,” Sun International said in a statement.
Sun International Chief Executive Graeme Stephens said, “This deal is a milestone in the history of Sun International. It gives the company great opportunities to achieve scale and reach outside Africa and diversify its earnings and risk. Dreams provides a strong presence in Chile, an expansion strategy that has seen growth in Peru, which is complementary to Sun International’s expansion into Panama and Colombia, and, importantly, an executive management team that comes from Latin America and has significant operational experience in the region.”
Stephens added, “Latin America holds tremendous potential and plans are well advanced to expand further in the region. We are already investigating exciting opportunities in Brazil, which is now opening to gambling, and have plans for expansion in Peru. Despite the current economic downturn, the gaming industry in Chile is still achieving good growth and there will be further opportunities in the next year or so to bid for additional licenses in Chile.”
