Playtech, the United Kingdom gambling giant, has seen its shares soar 14% after a saga with Mexican operator Cali Interactive ended.
The ongoing talks and disagreements between both parties resulted in a stalemate in the deal to settle the rights to a joint venture, Caliplay. Initially, Playtech sought legal support to challenge the Mexican operator’s non-payment of fees for software and gaming licenses in a London court.
In October 2023, Caliplay launched a reciprocal legal proceeding in the 46th Civil Court of Mexico City to annul its contract with Playtech. This has now concluded with a new set of terms, ending a year of litigation, arguments between both parties and a rocket in the Playtech share price on Monday.
Playtech and Cali Interactive agree on a path forward
Playtech will now own a 30% stake in Caliente Interactive, a new holding company of Caliplay incorporated in the United States. The UK gaming and sports betting titan can now appoint a director to Caliplay’s board.
Emilio Hank, Chairman of Caliplay, said: “We are delighted to finalize this renewed agreement, which shows the inherent strength of the strategic relationship between Caliplay and Playtech. We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint as we continue our mission to provide the best gaming experiences to our customers in Mexico and beyond.
The revised terms set out by Playtech include an eight-year business-to-business contract for software and technology support. Cali Interactive has now paid $166m of the initial contract, covering almost eighty percent of the outstanding fees owed to Playtech that were a part of the legal battles between the pair.
Mor Weizer, Playtech’s chief executive officer, said, “The agreement with Caliente and Caliplay underlines the attractiveness of Playtech’s leading proprietary technology.
‘With a strong position in Mexico and exposure to other fast-growing markets in the Americas and Europe, we remain well-placed to deliver strong growth in our B2B business in the coming years.”
Image: Pexels.
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