Playtech's Legal Dispute with Caliplay Continues in Mexican Court
Date: 2023-11-02 Author: Dima Zakharov Categories: EVENTS
The dispute between Playtech and Caliplay has been unfolding for quite some time, with the latest development occurring last month when Caliplay initiated legal proceedings to terminate its partnership with Playtech.
Caliplay, a joint venture between Playtech and the Mexican operator Caliente, has chosen to make the process public due to its perceived impact on the operation of its regulated business in Mexico.
In August, the Mexican court accepted jurisdiction over the claim, issuing interim orders while awaiting a final resolution. These interim orders include the suspension of certain rights held by Playtech under the agreements.
Playtech was also directed to continue providing software and services to Caliplay while the case is pending, despite other rights, such as the right to receive payments from Caliplay, being suspended.
However, Playtech responded by pointing out that the actions taken by Caliplay in Mexican court proceedings contradict the contractual agreements established since their strategic agreement in 2014. Specifically, Playtech highlighted the agreement that disputes between the parties should be resolved in England.
In an effort to safeguard its position and move towards a resolution with Caliplay, Playtech has taken several steps. This includes obtaining interim anti-suit injunctions from the English courts against Caliplay, compelling them to cease their actions in Mexican proceedings.
Additionally, Playtech's PT Services Malta secured interim measures from a Mexican court, instructing Caliplay to discontinue the case initiated in Mexico. Playtech believes that this will enable the dispute to be settled in England and allow compliance with the terms of the framework agreement that was suspended by the Mexican court.
Despite the ongoing disagreement, Playtech still values its partnership with Caliplay and is determined to resolve the matter promptly. Playtech intends to maintain open communication with Caliplay to find a way forward.
To understand how this dispute reached this point, it is essential to look back to February when Playtech sought clarification from English courts regarding a disagreement with Caliplay. The focus was on whether Caliplay still had the option to redeem an additional services fee element of their strategic agreement.
This option involved an agreed amount payable by the parties or, if not possible, determined by an independent investment bank. For the six months ending on June 30, 2022, this fee amounted to €34.4 million, and it was €22.3 million in the previous year. Caliplay claimed that the option had not expired, while Playtech asserted the contrary.
Caliplay also expressed its surprise at Playtech's decision to involve the courts, citing a lack of warning and reference to board approval in Playtech's announcement and interim report.
As of now, Caliplay has not responded to the latest statement from Playtech.
