Last year, the Mexican brand Caliente sued Playtech to dissolve their partnership. Both Playtech and Caliente filed lawsuits, accusing the Caliplay joint venture structure of breaching the contract.
However, on Monday (September 16), new terms were announced. Playtech will now hold a 30.8% stake in Caliente Interactive, which will become the new holding company established by Caliplay in the United States. As part of the agreement, Playtech also obtained an eight-year B2B software license and service agreement to continue serving Caliente. Additionally, Playtech will receive a total of $140 million in cash from Caliente Interactive, to be paid over the next four years.
Playtech had previously expressed concerns about unpaid issues by Caliplay, but now this issue has been resolved.
Playtech stated: "Caliplay has resumed paying software and service fees to the Playtech Group, and has now received more than 150 million euros (over 80%) of the unpaid fees."
"The remaining balance is in escrow and will be released after the revised arrangements are completed (expected in the first quarter of 2025) or at the latest by the end of 2025."
These revised agreements are pending approval by the Mexican antitrust authorities, expected to be completed in the first quarter of 2025. Meanwhile, all legal proceedings between Caliente, Caliplay, and Playtech have been suspended and will be withdrawn after the new terms are implemented.
Reflecting on this development, Weizer stated:
"Over the past nine years, we have established a successful and rapidly expanding digital business with Caliplay in Mexico. These revised arrangements will further accelerate our growth and strengthen our future position." He added that Playtech's innovative technology continues to be a major driver of growth in Mexico as well as other rapidly growing markets in the Americas and Europe.
Caliplay Chairman Emilio Hank agreed with Weizer's view, stating:
"This renewal agreement highlights the solidity of our strategic partnership with Playtech. By leveraging Playtech's industry-leading technology, we aim to expand our geographic coverage and provide the best gaming experience for customers in Mexico and other regions."
