The ongoing fight between Spanish company Cirsa and the Martinez family firm, which controls most of the present Chilean casinos, originates from the licensing process for the casino now operating in Viña del Mar, a seaside resort some 120 kilometres from the capital Santiago. Both companies fought fierce legal battles for a worthy prize until Cirsa decided to withdraw in order to concentrate on developing casinos on the rest of the South American continent. Cirsa is now the largest casino operator in the region.

Following the rejection of Thunderbird Resorts’ licence applications in most regions by the SCJ (the Casino Board), the two companies are once again rivals in a bid for operative supremacy. When the SCJ decided to eliminate Thunderbird from the licensing process, Cirsa, Enjoy (the new corporative vehicle for the Martinez) and other companies were quick to back the SCJ and file their own legal challenges but were rebuffed in the Chilean courts. Now Cirsa is pursuing legal action against the Martinez family, Enjoy and their lawyer Dario Calderon who has practically accused Cirsa of illegal dealings by commenting that “Cirsa calls to mind Aerocontinente” – a company condemned for drug dealing and money laundering.

In face of such an accusation, the head of Cirsa Chile, Helios Navarro, has announced to the local media that Calderon “has made a series of outrageous comments that, of course, we will not let go – we will be seeking compensation from him and the Martinez family. We are participants in a process that we considered serious and all the background information required by law and solicited by the SCJ has been presented.”

At the end of June the Chilean newspaper La Segunda reported an interview with a Chilean lawyer resident in Madrid, Gonzalo Boye, who questioned the effectiveness of the investigations undertaken at the beginning of April by the SCJ superintendent, Francisco Leiva, into the legal and financial history of the Spanish applicants. This was a clear reference to a possible lack of transparency over a judicial enquiry involving Cirsa in Spain.

The protagonists speak of terrorists, monopoly and corruption…

In reply to these comments from the lawyer, Helios Navarro said, “The ex Chilean ambassador in Spain, Enrique Krauss, acknowledges having contacted Mr Boye to undertake the relevant investigations in Spain in the casino licensing process. Boye is no ordinary person, he is an ex terrorist sentenced to 14 years in prison for being involved in one of the most notorious kidnappings perpetrated by the ETA, with the businessman Emiliano Revilla the victim. As foreign investors we are requesting an explanation. Mr Calderon has revealed that ex Ambassador Krauss was the Martinez family lawyer for 15 years, and this situation should be clarified.”

On a different front, and one of more urgency for the licensing process, is the criticism launched by legislator Jaime Mulet over the bidding, declaring that it, “has generated a sad spectacle in a rarefied atmosphere, with accusations between competitors of money laundering, corruption and other illegal acts.” In effect, the Representative has requested the suspension of the licensing process owing to a need for more transparency and futher discussion on procedural points.

Another Representative, Maximiano Errazuriz, has complained that the Casino Law and its regulations attempts against transparency and free competition between the companies because it convenes against the legal norm: “The Superintendent of Casinos is the one to allot points and to inform the Commission Resolutiva (Licensing Panel). No one knows under what criteria the points have been awarded nor how the recommendation is made. Not even the casino applicants know the points scored.” He goes further, “Until we modify the law neither the Superintendent of Casinos nor the Commission can give the bidders information on the points, and this law allows for the possibility of a monopolisation of the casino industry of Chile.”

However, the frustration of the Chilean parliamentarians has been emphasised by Jaime Mulet, “Today I am sorry that I ever approved this project, not only because I dreamed of a casino in my region to bring tourists but also because we now see that those interested only want to build in the big cities for gaming and profit . Tourism is such an important theme but lamentably we have not even heard the voice of the national Tourism Director, who recused himself on personal grounds, so how can we be speaking of tourism.”
(E-07.07.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage