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Playtech Plc has issued a further legal update on its ongoing service fee dispute with its Mexican joint-venture partner, Caliplay.
Updating investors, the FTSE250 gambling technology group responded to a Mexican court order filed by Caliplay on 5 October, which sought the “annulment of its legal relationship with Playtech and its related parties.”
Playtech states that it has “accepted service of those proceedings to enable the Group to respond to them and is now able to provide an update on the content of the court filings in Mexico.”
The response cites that “actions taken by Caliplay in the Mexican Court proceedings contravene the contractual agreements in place since the strategic agreement was originally established in 2014.”
The fallout of the JV came to light in February when Playtech approached the English courts for clarity regarding a disagreement with Caliplay, the online subsidiary of the Mexican casino group, Caliente SV.
The primary point of contention is whether Caliplay retains options to redeem an ‘additional services fee’ component of its strategic agreement on JV terms – a point that Playtech insists can only be terminated by mutual consent and with closure terms settled by an independent investment bank.
Playtech has secured an anti-suit injunction in England and interim measures to halt Caliplay’s Mexican demands and enforce agreement terms, with a trial set in London for October 2024.
The Mexican Court has approved interim measures, including redirecting fees due to Playtech into a court-supervised ‘trust account’ and suspending various rights and protections under the agreements.
Prior to the legal dispute, Playtech accounts indicated that Mexican JV service fees had accumulated to €34m during the first six months of 2022, recognised as one of the company’s most significant B2B technology contracts.
Playtech is committed to resolving the matter promptly and maintaining open dialogue with Caliplay, promising to update shareholders as necessary.
