Playtech Subjected to Legal Action by Caliplay in Mexico

Posted on October 11, 2023 | 6:15 am
caliplay-launches-legal-action-against-playtech-in-mexico

Playtech, the global supplier of slot games and live dealer games for online casinos, has received bad news from Mexico as Caliplay, a prominent Mexican online casino and sports betting brand, has recently announced its decision to commence legal proceedings against the company. The objective behind this legal action is to terminate an existing partnership between the two parties.

This legal move was initiated by Caliplay and filed in the 46th Civil Court of Mexico City. The lawsuit targets not only Playtech but also its subsidiaries, Playtech Software, and Playtech Malta. Caliplay was initially established as a collaborative venture between the Mexican operator Caliente and Playtech.

Caliplay has opted to sever its legal ties with Playtech, citing detrimental effects on its regulated online casino and sports betting operations. The Mexican Court has already issued several interim orders during the case, including suspending certain rights that Playtech held under their agreements with Caliente.

During the ongoing legal proceedings, Playtech remains obligated to provide software and services to Caliplay. However, Caliente will cease payments to the software supplier for its services.

In an official statement, Caliplay expressed its desire for a swift resolution of the matter. The Mexican operator also emphasized its commitment to maintaining open channels of communication with Playtech to address and resolve any disputes.

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An Extremely Productive Relationship

Playtech, on the other hand, responded positively to the news from Mexico. The global gaming supplier characterized Caliplay as a “highly valued customer” and described their contractual relationship as “extremely productive for both parties.”

Playtech clarified that it became aware of the legal proceedings through Caliplay’s announcement, not directly from the Mexican Court. A company statement emphasized that Playtech had not yet accessed the court filings in Mexico and had not been formally served with any proceedings. As a result, Playtech’s knowledge is based solely on the information provided in Caliplay’s announcement.

The origins of this legal dispute trace back to February when Playtech sought clarification from English courts regarding a disagreement with Caliplay. The dispute revolved around whether Caliplay still possessed an option to redeem an additional services fee component of their strategic agreement. This fee amounted to 34.4 million euros for the first half of 2022. Playtech contended that the option had expired, while the operator held a contrary view.

Playtech has recently strengthened its position in North America by signing a subscription agreement with NorthStar Gaming, the Canadian online casino and sportsbook operator from Toronto. The agreement will allow Playtech to expand its stake in NorthStar gaming with shares worth another 10 million Canadian dollars.

Source:

, igamingbusiness.com, October 5, 2023.

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