Playtech’s shares rose after the UK firm’s dispute with Mexican iGaming operator Cali Interactive was resolved. [Image: Shutterstock.com]
Shares in UK’s Playtech Plc, the world’s largest supplier of online gaming and sports betting software, rose 14% on the back of news that its ongoing dispute with Mexican iGaming operator Cali Interactive has been resolved.
refusal to pay B2B license and service fees
The detente dated back to July 2023 over Caliplay, the joint venture between Playtech and Cali Interactive. The dispute was over the Mexican parent’s refusal to pay B2B license and service fees amounting, at the time, to €122m ($132m) to Playtech for the lease of its proprietary software.
Despite the dispute heading to courts in London and Mexico, Playtech had constantly stressed that it wanted to continue its relationship with the Mexican brand. The relationship appears back on after Playtech announced on Monday that Cali Interactive has agreed to pay a total of $140m over four years to settle its debt.
The dispute over, a new agreement has been inked with the Cali brand that includes an eight-year B2B contract for Playtech’s ongoing software and technology support.
According to media reports, the new agreement will see Playtech own a 30.8% stake in a new US-incorporated subsidiary of Caliplay called Caliente Interactive. The UK firm can now also “appoint a director to Caliplay’s board.”
Caliplay Chairman Emilio Hank said the company was “delighted to finalize this renewed agreement.” Hank added the Mexican brand was “focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint.”
