Playtech and Caliplay Confirm Strategic Agreement Following Lawsuit

Playtech CEO Mor Weizer expressed optimism for an “exciting new chapter” with Caliplay after reaching a fresh strategic agreement between the two companies.

Last year, Mexican brand Caliente initiated legal action against Playtech, aiming to dissolve their partnership. Both Playtech and Caliente filed lawsuits citing breaches of contract within the Caliplay joint venture structure.

However, on Monday, new terms were announced. Playtech will now hold a 30.8% equity stake in Caliente Interactive, which is set to become the new holding company of Caliplay, incorporated in the United States. As part of the agreement, Playtech has also secured an eight-year B2B software license and services deal to continue supplying Caliente. Additionally, Playtech will receive a total of $140 million from Caliente Interactive, paid in cash over the next four years.

Playtech previously raised concerns regarding missed payments from Caliplay, but these have now been addressed.

“Caliplay has resumed paying the Playtech Group its software and services fees, with over €150 million (more than 80%) of the unpaid fees having now been received,” said Playtech

 "The remaining balance is in escrow, set to be released upon the closing of the revised arrangements (expected in Q1 2025) or by the end of 2025 at the latest."

These revised agreements are pending approval from Mexican antitrust authorities, with finalization expected in Q1 2025. In the meantime, all legal proceedings between Caliente, Caliplay, and Playtech have been paused and will be dismissed once the new terms are implemented.

Reflecting on the development, Weizer stated:

"Over the past nine years, we have built a successful and rapidly expanding digital business in Mexico alongside Caliplay. These revised arrangements will further accelerate our growth and strengthen our position for the future." He added that Playtech’s innovative technology continues to be a key driver of growth in Mexico and other fast-growing markets across the Americas and Europe.

Caliplay chairman Emilio Hank echoed Weizer's sentiments, saying:

"This renewed agreement underscores the strength of our strategic partnership with Playtech. By leveraging Playtech’s industry-leading technology, we aim to expand our geographical reach and provide the best gaming experiences to our customers in Mexico and beyond."