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Playtech Plc has renegotiated its terms of service with Grupo Caliente, settling commercial disputes related to the Mexican joint venture of Caliplay.
The commercial disagreement began in 2023 when Grupo Caliente, Mexico’s largest casino operator, annulled service fees, with Playtech disputing contract entitlements of the Caliplay JV.
The dispute saw Playtech and Caliente initiate separate lawsuits in London and Mexico City, claiming contractual breaches regarding how the Caliplay JV was structured.
This morning, Playtech announced to the markets that it had reached a new strategic arrangement in which the LSE-listed gambling technology group will hold a 30.8% equity interest in Caliente Interactive Inc. (“Cali Interactive”), the new holding company of Caliplay, incorporated in the United States.
Cali Interactive will operate under a new commercial structure, which will see Playtech receive dividends alongside other shareholders.
Playtech retains additional rights to appoint a Director to the Board of Cali Interactive.
A resolution has been agreed on software services, in which Playtech has secured a new eight-year contract to serve as the lead systems and software supplier for Cali Interactive.
Emilio Hank, Chairman of Caliplay, said: “We are delighted to finalize this renewed agreement, which shows the inherent strength of the strategic relationship between Caliplay and Playtech. We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint as we continue our mission to provide the best gaming experiences to our customers in Mexico and beyond.”
The settlement will see Playtech receive an additional $140 million from Cali Interactive, paid in cash over a four-year period.
Playtech informed investors that Caliplay had resumed its software fees, with more than €150 million (approximately 80%) of outstanding payments received.
The revised arrangements are subject to Mexican antitrust approval, with closing expected in Q1 2025, and all current legal proceedings between Caliente, Caliplay, and Playtech will be dismissed once the arrangements take effect.
Mor Weizer, CEO of Playtech, said: “During the past nine years, we have worked closely with Caliplay to create a successful and rapidly growing digital business in Mexico. The revised arrangements mark the beginning of an exciting new chapter that will build on the impressive progress to date, with a view to driving significant further growth for Cali Interactive in the future.
The agreement with Caliente and Caliplay underlines the attractiveness of Playtech’s leading proprietary technology. With a strong position in Mexico and exposure to other fast-growing markets in the Americas and Europe, we remain well-placed to deliver strong growth in our B2B business in the coming years.”
