The largest casino project in Chile is set to hit trouble waters as architects, ex partners and even a local university all threaten law suits. The company Marina del Sol in the city of Talcahuano, in the southern region of Bio Bio, was awarded a casino licence in the licensing gaming process begun in 2005 in the South American country. As part of majority shareholder’s real estate company Valmar, the investment outlined for a casino complex to emulate Venice was close to US $91 million.

In fact the casino licence for Marina del Sol has been questioned in the Chilean Congress, and a censuring motion to review several decisions, including the licensing of this project, made by the local Gaming Commission will go to a vote later in the month. The questions raised about the Marina del Sol licence entail a donations contract between Valmar and the University of Bio Bio, which also acted as one of the technical experts for the evaluation of the casino projects during the licensing process.

As the plot thickened in such a licensing process, the University of Concepcion, in association with the local lottery firm and local casino operating leaders Enjoy, have accused Valmar, Bio Bio University and the Gaming Commission of colluding to do them out of a casino licence and, for this reason alone, the Lower House in Chile has asked for the dismissal of the Gaming Commissioner.

However, it seems that the first legal salvo is set to come from local architect firm San Martín y Pascal Arquitectos, who claim fees in excess of US $750,000 for the quaint Venice type resort project that includes an 86,000 sq ft casino, 9 restaurants, spa, 5-star hotel and cinemas, together with canals and gondoliers, one supposes!

The other Marina del Sol estranged partner, Neven Ilic who is also in the real estate business and president of the Chile Olympic Committee, has appointed legal eagles to take the Imschenetzky family, who control Valmar, to Court, while Miami based casino operators South America Gaming, which was managing the Marina del Sol project up to the end of January and was the operating partner, is also set to enter the legal fray.

In the midst of all this, Fernando Bustamante, close friend of ex president Ricardo Lagos, was appointed to the board of Valmar in 2005, right in the middle of the casino licensing process. Formal denial by Nicolas Imschenetsky to the national press about Bustamante having a non gaming role, sounds rather like the UK government denying paying billions to the Arab wheeler dealer in the aircraft scandal. The president’s friend is also on the board of the Telefonica Chile, and collects from other juicy posts as well.
(E-07.02.07)

© Copyright 2007 CasinoCompendium



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