Enjoy restructures for second time in as many years
Enjoy restructure, Argentinian casinos, Chile survey, Televisa split, Colombian seizures +Más
Chilean operator Enjoy hits the skids… again.
In +Más: Brazil targets influencers, Endorphina’s LatAm expansion.
Argentina: Mendoza casinos scooped $24m last year.
Survey reveals 80% of Chile’s youth have played or watched online games.
Mexico: Televisa splits to create football and betting division.
Coljuegos seizes equipment used for illegal gambling in Bogotá.
Enjoy restructuring
Shares slump as company admits it has been unable to pay its creditors.
Not enjoying life: The Chilean casino operator Enjoy is in financial trouble once again and plans to restructure after it told regulators it has battled to pay its bills as it struggled to recover from the pandemic. This will be the second reorganisation of the business in less than two years after it went through a similar process in February 2022.
In a statement to Bloomberg, the company said it has “determined this is the best alternative to provide sustainability.”
“Taking into account there are growth projects that have not been made possible, mainly due to restrictions in liquidity and the slow post-pandemic recovery.”
New boss: At the same time, the company also announced the resignation of CEO Eliseo Gracia Martinez. He has been replaced by CFO Esteban Rigo-Righi Baillie, who will continue in both roles for the time being.
Not on my watch: Recall, in April last year Enjoy and its fellow Chilean casino operator Dreams called off a merger between the two, in part due to a National Economic Prosecutor's investigation into potential collusion within the sector.
As of the time of the Q3 earnings report, Enjoy had debts of $298m and held cash of only $27.6m.
Breaking up is hard to do: Reports have suggested previously that Mexican casino group Logrand Entertainment is a potential buyer of some of Enjoy’s casino assets.
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+Más
Under the influence: The Brazilian government is preparing a regulation to govern the advertising of online games and bets, including those carried out by digital influencers.
The goal is to define the responsibility of operators and those who disseminate false information and unauthorized games in the country.
If a bettor feels harmed by a site, for example, they would be able to take legal action against the influencer.
Czech-based slots provider Endorphina is to partner with Gaming Platforms to expand its presence in Latin America and offer its exclusive collection of over 150 casino slots.
The Argentine Football Association has announced data, technology and sports broadcasting provider FeedConstruct will be its new regional sponsor in Europe.
Salsa Technology will showcase its iGaming solutions at ICE 2024 in London next week. Founder Peter Nolte noted Salsa is one of the first platforms to operate in the newly regulated Brazilian market, through a technological partnership with NossaBet.
Gaming & Technology Expo has moved its Dominican Republic event from Punta Cana (its home for the last three years) to the country’s capital. GAT Showcase Santo Domingo 2024 will be held on Sept. 18-19.
Argentinian casinos
Top ten: The 10 casinos operating in the province of Mendoza garnered $23.8m (ARS19.6bn) after deducting prize payouts last year, according to the region’s Provincial Institute of Games and Casinos (IPJyC), an increase of 93% compared to the previous year.
From this figure, it can be estimated the people of Mendoza bet an average of $64.22 per day last year.
More than 4,000 slot machines and 114 gaming tables operate In the territory, offering games such as roulette, poker and blackjack, among others.
Condor recorded the highest percentage growth in revenue, with a 268% increase YoY, followed by the state-owned Central and Arena Maipú.
The casinos that generated the highest revenues were Dreams Plaza ($3.9m) and Cosmo ($3.7m).
Last year, the IPJyC transferred around $1.8m to the government of Mendoza, another $1.8m to the budget of said province and $369k to popular libraries, representing 35% of its income (as required by Law 7314, art. 38).
The casinos legally operating in Mendoza are Arena, Central, Cóndor, Cosmo, Dreams Plaza, Fuente Mayor, General Alvear, Malargüe, Tower and Zona Este.
Chile survey
It’s in the game: Eight out of 10 Chilean young people aged 15 to 29 have played online or have been on online platforms where others play, according to a survey by the Superintendency of Gaming Casinos (SCJ) and the National Institute of Youth (INJUV) of Chile.
Of these, dedicating seven hours a week to gaming, 89% are men and 83% belong to a high socioeconomic status.
On the other hand, those who use Twitch or YouTube to watch others play do so for six hours a week.
In addition, five out of 10 young people claim to have bet at some point; 58% of them are men and 36% are women, with the majority being between 20 and 24 years old.
Our survey says: The ‘Youth and Games’ survey – part of the SCJ’s National Responsible Gaming Strategy – surveyed 1,515 young people (aged 15 to 29) from all regions of the country. The study seeks to educate and inform players, their families and society in general about the risks and problematic and/or pathological behaviors that gambling can lead to and how to prevent them, promoting responsible gaming practices.
One in three young people claim to have spent money on informal bets with others (friends, family, etc.) in the last year.
Also, one in three claim to have bought lottery tickets, and one in five has bet on sports events in person or online.
Half stated they have played online, and half of them indicated doing so to escape their problems.
The creation of a regulatory framework for the activity in Chile is still under discussion – with broad support of almost 85%, according to a recent Panel Ciudadano survey – which is being analyzed by the Senate and the Congressional Economic Commission.
Televisa move
Do the splits: Mexican telecommunications giant Grupo Televisa has partially split to create Ollamani, a company that will take care of football, gaming and lottery businesses, as well as the publication and distribution of the group's magazines and related assets.
As a result, Club América and Estadio Azteca become the property of Ollamani.
On Jan. 26, Televisa’s shares – traded on the New York Stock Exchange – rose by 13%, prompting the company to inform the market that it is “possible” these “unusual movements” were due to the information about the partial split of the company, which has been in progress since it was approved in late April of last year.
Ollamani has already started the process to be listed on the Mexican Stock Exchange, which requested additional information from Televisa after the 13% increase in its share price in New York.
Televisa confirmed it repurchased shares, has no knowledge that members of its board of directors or relevant executives participated in these movements, but assured that, if it identifies information in that regard, it will announce it in accordance with the law and stock market regulations.
Colombia seizures
It’s a raid: On Jan. 24, Colombian authorities raided five premises dedicated to illegal betting in the Santa Fe neighborhood of Bogotá and seized equipment worth $128m. Regulator Coljuegos, the National Police and the Attorney General’s Office carried out the intervention, in which 89 elements for online betting, an electronic slot machine, 29 computers, 31 televisions, 28 CPUs, ticket printers and VDRs were found.
In the operation, four people were arrested and brought before a judge; one of them already had a criminal record.
According to the president of Coljuegos, Marco Emilio Hincapié, the illegal establishments had been operating for about five years.
He estimated Bogotá had lost about $6.6m in taxes and exploitation rights in that period, resources that should have been transferred to the health sector.
Sanctions for individuals and companies operating illegally in the betting market range from 300 minimum wages (about $100,000), five years of disqualification to operate games of chance and six to eight years in prison.
Publishing schedule
This is the English version of the LosIngresos+Mas newsletter published yesterday (1 February).
An +More Media publication.
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