Playtech has announced a strategic partnership with the Mexican operator Caliente regarding their joint venture, Caliplay, potentially resolving a long-standing dispute between the two companies. Playtech CEO Mor Weiser stated that the agreement highlights the appeal of Playtech’s technology, positioning the company favourably in Mexico and other rapidly expanding markets across the Americas and Europe, which bodes well for the growth of its B2B operations in the upcoming years.
Under the terms of the new deal, Playtech will acquire a 30.8% stake in Caliplay's newly formed holding company, Caliente Interactive, registered in the United States. Additionally, Playtech will have the right to receive dividends on par with other shareholders and retain the right to appoint a director to Caliente Interactive's board. The agreement also stipulates that Playtech will receive $140 million in cash over the next four years.
The dispute arose primarily over financial disagreements. Caliplay believed it could impose additional service fees based on an existing strategic agreement with Playtech, which Playtech contended had expired. Caliplay maintained that the agreement was still in effect, and both sides were reluctant to adjust their stances.
Initially, Playtech claimed that Caliplay owed them €34.4 million in outstanding service and licence fees for the six-month period ending June 30, 2022, a figure that continued to grow during the dispute. It is noteworthy that Caliplay has already paid a significant portion of the disputed fees, totalling over €150 million—about 80% of the amount claimed.
Provided that Mexican antitrust authorities approve the modified agreement, it is expected that all disputes and legal actions will be resolved by the first quarter of next year.
