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Chile’s Superintendence for Gambling Casinos begins tender process for new casino concessions in May

TAGs: Chile, Press Releases, SCJ

• The cities where new concessions will be awarded are Arica (Arica and Parinacota Region), Iquique (Antofagasta), Coquimbo (Coquimbo Region), Viña del Mar (Valparaiso Region), Pucón (Araucanía Region), Puerto Varas (Los Lagos Region) and Natales (Magallanes Region).

The Superintendence for Gambling Casinos (SCJ) is currently engaged in the final review of the rules for participating in the bidding process for gambling casino concessions, which will be in force for the upcoming tender of seven municipal casinos around the country. A preliminary version of the rules was subjected to public consultation and is available on the institutional website at: http://www.scj.gob.cl/normativa/tramite.

Chile’s Superintendence for Gambling Casinos begins tender process for new casino concessions in MayAccording to the Gambling Casinos Act, once the rules have been approved and published on the SCJ website, the institution must issue an inaugural resolution formally declaring the tender process for obtaining concessions open, which is expected to take place in the first half of May.

The cities where new concessions will be awarded are Arica (Arica and Parinacota Region), Iquique (Antofagasta), Coquimbo (Coquimbo Region), Viña del Mar (Valparaiso Region), Pucón (Araucanía Region), Puerto Varas (Los Lagos Region) and Natales (Magallanes Region) where iconic traditional municipal casinos currently operate.

This process is the first one to be undertaken under Law No. 20,856, in force since August 2015, and which amends the previous law on casinos, No. 19,995. “This new legal framework enforces objectivity and transparency in the process of awarding concessions, which also guarantees the maximum revenues for the state, regions and municipalities,” explained Provisional Superintendent for Gambling Casinos Daniel García.

Thus, the spirit of the new law is to guarantee increased revenues with maximum transparency and objectivity in the adjudication of concessions, for which the Superintendence has developed a methodology that embodies these values, defining format as well as evaluation methodology, causes for exclusion, transparent criteria, the determination of a minimum guaranteed bid, operational continuity of the casinos and public hearings.

It should be noted that the Superintendence has worked to design a tender process to award concessions under conditions that promote increased competition and reduce the entry barriers for new operators, thus maximizing the number of bids that interested parties can make and the number of projects presented.

Process stages

1 Preparation

– January-February 2016: special conditions and minimum bids for each process are determined and included in the process rules

– Draft tender process rules published for consultation.

2 Opening

– Final rules are approved and published on the SCJ website.

– Resolution declaring concessions tender process open is issued, including deadlines and locations for obtaining rules and presenting technical and economic bids.

3 Consultation process

– A 10-day period for questions and requests for clarification on the rules (beginning on date of opening resolution)

– The deadline for issuing replies is 15 days. These will be made available to all stakeholders in the process.

4 Public hearing for presentation of technical bids

– Technical bids are received from each participant and the SCJ verifies that they contain all of the documents requested in the rules.

– An Executive Council member safeguards economic bids until the separate hearing to open them, between 90 and 120 days after the opening resolution.

5 Project assessment

In this stage the following is verified:

– compliance with legal and regulatory requirements,

– technical details of the projects,

– compliance with special conditions

– origin and sufficiency of funds

In addition, a technical assessment of the project is undertaken.*

6 Confirmation, request for review or end of assessment

– Executive Council either confirms scores of bids or asks for more information before deciding whether to conclude the assessment stage or not.

7 Hearing for the opening of economic bids

– Envelopes containing the economic bids of prequalified participants (over 600 out of a total score of 1,000 points) are opened.

– Concessions are awarded to the project with the highest economic bid.

– This hearing is held within five days after the technical assessment resolution is issued.

8. Resolution on adjudication, denial or renewal of licenses

– The Superintendent issues resolutions awarding, denying or renewing concessions within five days after the opening of economic bids.

* Assessment criteria

The evaluating parties must assign a total of 1,000 points to the proposals, which are distributed in the following way:

Chile’s Superintendence for Gambling Casinos begins tender process for new casino concessions in May

The criteria that the different evaluating parties follow in the process are as follows:

1. Regional Intendent’s Office: The merit of the municipality proposed by the bidder for installing a gambling casino (0 to 60) and the project’s impact on the regional development strategy (0 to 40)

2. Municipality: Project’s impact (0 to 50) and logistical viability (0 to 50).

3. National Tourism Service (Sernatur): quality of consolidated tourism district or the clear tourism potential of the proposed location (100).

4. Ministry of the Interior and Public Security: The security and public order characteristics of the proposed location and its immediate surroundings (100).

5. SCJ: Assessment of increased variety for tourism, location, design and quality of facilities, connection to public roads, socioeconomic effects on the proposed location and the total amount to be invested, in addition to undertaking in background checks of partnership members and the minimum requirements to avoid exclusion (such as documents in the proper format, not having been sanctioned for serious acts of noncompliance, for example. 600 points).

CITIZEN SERVICES AND COMMUNICATIONS UNIT

SUPERINTENDENCE OF GAMBLING CASINOS (SCJ)

TELEPHONE: (+562) 2589 3000

CONTACT: Claudia Valladares

EMAIL: cvalladares@scj.gob.cl

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