With the ongoing gambling regulatory shifts in Latin America, South Africa’s Sun International has become among the many gambling companies to spot and embrace the investment potential of the region.
The casino operator announced today that it intends to increase its stake in its Latin America-facing joint venture Sun Dreams to 65% from the 55% one it currently owns. Sun International’s regional subsidiary Sun Latam and local partner Nueva Inversiones Pacifico Sur Limitada are planning to purchase a 19.3% Sun Dream stake, currently held by Chilean company Entretenimientos Del Sur Limitada.
According to a statement released by Sun International, its Sun Latam business is set to pay $63 million for its portion of the above-mentioned stake.
It was last year when the South African casino operator announced that it would pursue expansion of its operations beyond its homeland and the rest of Africa. Sun International revealed that it had decided on that major step due to the lack of more casino licenses as well as South Africa’s limited gambling market.
Latin America has turned into a major draw for international gambling operators, both land-based and online ones, in recent years. The apparent demand for gambling options as well as the shifting regulatory environment have encouraged gaming and betting companies from all around the world to explore the region and its potential to become the next major gambling hub.
Sun Dreams, Sun International’s Latin American joint venture, was brought to life last year as a result from the merger of the South African operator’s Latin American assets with those of its Chilean counterpart Dreams. The deal secured the combined entity with greater exposure to gambling customers from Chile, Colombia, and Panama, among other jurisdictions across the region.
At present, Sun Dreams operates 13 gambling properties, several of which are part of larger hotel and casino complexes. The operator’s venues feature 44 table games and 6,500 slot machines.
Sun International has previously pointed out that it plans to further extend its Latin American footprint with the potential construction of casino properties in Brazil and Peru. Lawmakers of both countries are currently discussing the introduction of new regulations that may open their gambling markets to international operators and expand the scope of legal gambling options.
Brazil, in particular, has been eyed by a number of major international gambling companies, due to the big demand for gaming and sports betting. If more legal gambling services are introduced in the country, as planned, it holds the potential to become the world’s largest regulated jurisdiction.
