Operatornieuws
Spanje – Cirsa moet twee bingohallen in Barcelona sluiten om Giga te kunnen kopen
By Phil - 2 augustus 2019
The National Commission for Markets and Competence (CNMC) has authorised the acquisition of Giga Game System Operations, a slot hall operator and games distributor in Spain, in the first phase dependent on a number of commitments on behalf of Cirsa.
The new deal affects the autonomous communities of Catalonia, Valencia and Aragon. The Spanish company must close two bingo halls located in the city of Barcelona, the licenses of which may be acquired by new competitors.
The risks posed to fair competition due to the high market share that Cirsa will have in Catalonia once the deal goes into effect will be offset by a number of agreements specifically, in relation to the management of slot machines in hospitality establishments, as well as when it comes to the running of games and bingo halls.
As a result the authorisation of the operation remains subject to the fulfilment of a series of commitments to competition rules according to the CNMC chaired by José María Marín Quemada.
For the hospitality establishments side of its operations Cirsa has pledged to eliminate the exclusivity clauses in all contracts signed in Catalonia, in order to foster fair competition between recreational machine operators within the local community.
In addition, the company will reduce the duration of five-year contracts in both its hospitality establishments and slot parlours favouring greater market competition amongst licence holders. This commitment will also extend to the signed contracts outside Catalonia which will enhance the competitive landscape for the market throughout Spain.
Cirsa pledged to revise all contracts of five years within the next between 12 to 24 months. It will give priority to longer term contracts of 10 years, as it is, according to the CNMC, the most damaging when it comes to competitive dynamics in the sector.
In May it was reported that Cirsa had closed an acquisition that would allow it to substantially increase its size in Catalonia and operate a casino for the first time in its home community. The gambling group told its bondholders that it had reached an agreement to acquire Giga Games System Operation from the family of Juan Lao, brother of the former owner of Cirsa.
The CNMC will monitor compliance by the company and will require periodic reports allowing the licensee’s programme to be contrasted against the results. The CNMC is a public entity that promotes and defends the proper functioning of all markets, in the interest of consumers and businesses.
Giga Games is een game- en vrijetijdsgroep die een uitgebreid park met recreatiemachines beheert in bars en restaurants, voornamelijk in Catalonië en de regio Valencia. Daarnaast beschikt het bedrijf over tientallen speelhallen en meerdere bingohallen. In totaal bereikten de door Cirsa overgenomen bedrijven in 124 een omzet van € 2018 miljoen.
This figure is equivalent to more than half of the turnover (€216m) recorded in 2017 by the Conei Corporation of which Giga Games is a subsidiary.
Juan Lao Hernández richtte Conei in 1998 op nadat hij gescheiden was van zijn broer, Manuel Lao, aan wie hij zijn aandeel van 44 procent in Cirsa verkocht en een deel van het bedrijf behield. Volgens de lokale pers impliceert deze overname daarom de hereniging van de voormalige Laotiaanse groep en zou dit kunnen betekenen dat de twee broers ervoor hebben gekozen om hun gamingactiviteiten af te stoten en te verkopen aan het Noord-Amerikaanse fonds Blackstone.
