Playtech and Caliplay Resolve Dispute with New Agreement

Playtech and Caliplay Settle Dispute with Revised Strategic Agreement

Playtech, a leading name in the gaming industry, has officially resolved its long-standing dispute with Caliplay, the joint venture with Mexico-facing operator Caliente, by entering into a new strategic agreement. This new deal ends months of legal battles and marks a significant step forward, creating opportunities for growth and collaboration in the iGaming market. The revised terms not only settle past financial disputes but also pave the way for Playtech to continue leveraging its proprietary technology in a key market, maintaining its position as a leader in B2B gaming solutions. Explore how this agreement reshapes the future for Playtech and Caliplay, and what it means for the broader gaming landscape.

Playtech and Caliplay Resolve Dispute with New Strategic Agreement

Playtech, a global leader in gaming technology, has announced a revised strategic agreement with Caliplay, the joint venture formed with Mexican operator Caliente. This new arrangement effectively ends a protracted dispute between the two parties over unpaid fees and positions both companies for continued growth in the competitive iGaming market.

The dispute, which had been simmering for over a year, centered around disagreements over unpaid service fees linked to their initial strategic agreement. Caliplay insisted it had the right to redeem additional service fees, while Playtech maintained that this option had expired. Both parties were at a stalemate, with Playtech claiming it was owed €34.4 million ($38.3 million) for the first half of 2022, an amount that continued to grow as the dispute dragged on.

Key Terms of the New Agreement

The revised agreement brings much-needed resolution and clarity, with both parties agreeing to stand down from ongoing legal proceedings. Notably, Caliplay has resumed payments of the disputed fees to Playtech, with more than €150 million—approximately 80% of the outstanding amount—already placed in escrow. This balance will be released upon the closure of the new arrangement or by the end of 2025.

Under the new deal, Playtech will hold a 30.8% equity interest in Caliplay’s newly established US-incorporated holding company, Caliente Interactive. This position entitles Playtech to receive dividends alongside other shareholders and to appoint a director to the board, reinforcing its influence within the company. In addition, Playtech will receive $140 million in cash over the next four years.

The agreement also outlines a revised eight-year B2B software license and services deal, ensuring Playtech’s cutting-edge technology continues to power Caliplay’s operations. This new contract is subject to approval by Mexican antitrust authorities and is expected to be finalized by the first quarter of 2025.

A New Chapter for Playtech and Caliplay

This settlement brings an end to a contentious chapter that began in early 2023. The conflict escalated when Playtech sought a court declaration in England to resolve the disagreement over service fees. Caliplay retaliated by launching legal proceedings to dissolve its partnership with Playtech, but the companies have now managed to find common ground.

Playtech CEO Mor Weizer expressed optimism about the new agreement, highlighting the enduring success of the Caliplay venture. “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,” Weizer said. He emphasized that the partnership underscores the strength of Playtech’s proprietary technology and its ability to drive growth in the Americas and Europe.

Caliplay Chairman Emilio Hank also welcomed the new deal, praising the strategic relationship between the two companies. “We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint. Our mission is to continue delivering the best gaming experiences to our customers in Mexico and beyond,” Hank commented.

The resolution of the Playtech-Caliplay dispute marks a pivotal moment for both companies. The new strategic agreement not only resolves past financial disagreements but also lays the groundwork for continued collaboration and expansion. With a clear path forward, Playtech and Caliplay are well-positioned to capitalize on new opportunities in the fast-growing iGaming markets of the Americas and beyond. This agreement reaffirms Playtech’s commitment to leveraging its industry-leading technology to drive success in key regulated markets, reinforcing its role as a dominant force in global gaming.

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Playtech and Caliplay Settle Dispute with Revised Strategic Agreement Playtech, a leading name in the gaming industry, has officially resolved its long-standing dispute with Caliplay, the joint venture with Mexico-facing operator Caliente, by entering into a new strategic agreement. This new deal ends months of legal battles and marks a significant step forward, creating opportunities
The post Playtech and Caliplay Resolve Dispute with New Agreement appeared first on Gamingo News.