Playtech responds to Caliplay’s legal proceeding claims in Mexico

Playtech has responded to claims made by its Mexican partner Caliplay that legal proceedings have been issued which seek to annul their partnership.

Caliplay, a joint venture between Playtech and Mexican gaming operator Caliente, said Thursday that the 46^th Civil Court of Mexico City had issued legal proceedings on 22 August against Playtech and its subsidiaries, Playtech Malta and Playtech Software, among others.

The claim seeks the annulment of the legal relationship between Caliplay, Playtech, and related parties contained in various contractual agreements.

“As such, it is directly relevant to the running of Caliplay's regulated business in Mexico,” said Caliplay in a statement. “This announcement has therefore been issued by Caliplay to ensure that its customers and business partners are made aware of the position and as an update to the market announcements previously issued by Playtech plc and Caliplay earlier this year (on February 6 and 10, respectively).”

According to Caliplay, the Mexican Court accepted jurisdiction over the claim on 28 August, and issued a number of interim orders pending final resolution of that claim, which include the suspension of key rights held by Playtech under the agreements.

“In order to protect Caliplay's customers and ensure that the running of Caliplay's business is not disrupted, Playtech has been ordered to continue providing software and services to Caliplay pending final resolution of the claim,” continued Caliplay. “This is despite the suspension of other rights, including Playtech’s right to receive payments directly from Caliplay for those services.

“Caliplay is keen for this matter to be resolved quickly, and is committed to maintaining a channel of communication with Playtech through which any disputes can be discussed and resolved.”

In its response later on Thursday, Playtech said that Caliplay is a highly valued customer and partner, and that this has been “an extremely productive relationship for both parties.”

“Whilst Caliplay has stated that the Mexican courts accepted jurisdiction on 28 August 2023, Playtech only became aware of the issuance of proceedings today,” said the company. “Playtech has not yet had access to the court filings in Mexico and, to the best of its knowledge, has not yet been served with any proceedings. Playtech is therefore only aware of the matters in Caliplay's announcement.

“Once Playtech has had access to Caliplay's court filings and has been able to review the substance of any proceedings, the company will update shareholders further as necessary.”

Earlier this year, Playtech went to court in England to settle a dispute relating to the strategic agreement between the two partners, under which Playtech provides its software, technology and various services to Caliplay in return for fees.

Playtech and Caliente had previously planned to take Caliplay public via a SPAC transaction in the United States, with that plan terminated last year due to deteriorating capital market conditions.

Shares in Playtech plc (LSE:PTEC) were trading 1.24 per cent lower at 412.80 pence per share in London earlier Thursday.