Posted on: October 6, 2023, 06:50h.
Last updated on: October 6, 2023, 06:50h.
In a major legal development, Caliplay, a well-known Mexican online casino and sports betting entity operated by Grupo Caliente, has initiated legal proceedings to sever ties with its technology gaming partner, Playtech. Although the two have been engaged in a dispute for several months, the filing of the lawsuit has taken Playtech by surprise.
The lawsuit was filed before the 46th Civil Court of Mexico City, according to a press release from Caliplay. It targets Playtech plc and its subsidiaries Playtech Malta and Playtech Software Limited. The lawsuit also includes Ron Yosef Samoaloff, whose role and identity remain unclear, and the Public Property and Trade Register of the State of Baja California.
The main objective of the legal claim is to terminate the existing legal partnership between Caliplay, Playtech, and other parties as outlined in various agreements. The outcome of this legal battle has direct implications for Caliplay’s regulated operations in the Mexican market and may impact the Caliente.MX online gaming platform.
From Conflict to Court
The lawsuit represents a latest development in an ongoing legal battle regarding Playtech’s rights within the Caliplay partnership. Playtech believes it is not obligated to continue paying certain fees as specified in the contract, but Caliplay disagrees.
In February, Playtech attempted to resolve the issue through the UK court system, but the case is still pending. Unsatisfied with the progress, Caliplay launched its legal battle in August.
During the same month, a Mexican Court recognized the validity of the claim and issued several interim orders, valid until a final resolution is reached. These orders include the suspension of certain rights Playtech has as per the existing agreements.
Significantly, to ensure there is no disruption to Caliplay’s business operations and to protect its customers, the court has ordered Playtech to continue providing services to Caliplay throughout the legal proceedings. However, the court has heavily favored Caliplay, suspending any payments to Playtech for the services rendered.
Caliplay has expressed its willingness to work with Playtech in order to resolve the dispute. However, the lawsuit complicates the matter.
No Official Notice Received
A few hours after Caliplay issued its press release, Playtech, which has been Caliplay’s technology partner since 2014, responded with its own statement. Playtech stated that it has not yet received any official notification of the lawsuit and does not have access to the filings.
Playtech, a potential suitor for Italian-facing gaming operator SKS365, tried to maintain a positive tone in its update, referring to Caliplay as a “highly valued customer and partner” of the company in Mexico. However, this may change if the Mexican courts rule in favor of severing Playtech’s partnership with Caliplay.
The disputed fee that Playtech is contesting is substantial – as previously disclosed, the amount was €34.4 million (US$36.23 million) as of June of last year, a significant increase from €22.3 million (US$23.48 million) the previous year. Now, the figure could be more than €10 million (US$10.53 million) higher.