Playtech and Caliplay enter into revised agreement to further growth

The news of the revised agreement comes amid a recent financial dispute, with Caliplay refusing to pay €122 million ($131 million) in outstanding payments for 2023-2024.

One of the key changes in the agreement is that Playtech now owns 30.8% of the shares of Caliente Interactive, Inc., which will become a new holding company for Caliplay and will be registered in the United States. Under the new terms, Playtech will be entitled to dividends from Caliente Interactive at least quarterly. The company will also be able to appoint one director to the holding company's board of directors, provided that it maintains a minimum 15% ownership stake. In addition, the parties signed a revised eight-year agreement providing for a software and services license.

Caliplay has agreed to pay Playtech an additional $140 million in cash over four years. The first $12 million will be transferred immediately upon completion of the transaction, and the remaining funds will be transferred in 16 equal installments of $8 million each.

In addition, Caliplay has resumed payments to Playtech for software and services. The company has already received more than 80% of the total amount owed - more than €150 million ($166 million). The remaining funds have been placed in escrow and will be paid in the first quarter of 2025.

Caliplay will also pay Playtech certain compensation over the next five years in the event of non-use of certain Playtech software products.

In addition, the parties have agreed to suspend all legal proceedings. All legal proceedings between Caliente, Caliplay and Playtech will be permanently terminated once the new terms of the agreement come into effect.

Playtech also analyzed Caliplay’s financial statements and confirmed that the company showed stable results in the first half of this year. Playtech CEO Mor Weiser noted the successful nine-year partnership with Caliplay, which has allowed them to build a thriving digital business in Mexico. Weiser added that the updated terms of the agreement mark the beginning of a new chapter that will help achieve even greater success in the future.

Caliplay Chairman Emilio Hank also expressed his satisfaction with the conclusion of the revised agreement, noting that it underlines the strength of the strategic partnership between Caliplay and Playtech. According to him, the new agreement will help the company continue to provide the best gaming services to its customers both in Mexico and abroad.

The revised terms require approval from Mexico's antitrust authority, COFECE. The approval process is expected to take about six months.