Playtech has revealed that it is seeking a declaration from English courts relating to a dispute with Caliplay over its joint venture options.
The dispute relates to an option that Caliplay held to redeem an additional service fee on a strategic agreement between the two parties.
Playtech has served as Caliplay’s joint venture partner for the Caliplay Mexico launch in 2014 but the tech firm now demands a court to resolve a contractual disagreement.
According to Playtech, Caliplay has stated it still holds an option to redeem an additional services fee as part of its strategic partnership, though Playtech believes the option expired in 2022.
The option would mean Caliplay would pay up to $37m in additional service fees with the Mexican JV currently holding a strong market position.
In a statement to investors, Playtech noted: “The Option was structured such that the amount payable by Caliplay to Playtech upon exercise would either be agreed between the parties or failing which, determined by an independent investment bank valuing Playtech’s current entitlement to receive the additional services fee until Dec 31, 2034.
“For the six months ended June 30, 2022, the amount of this services fee was €34.4m ($37m) and the business has continued to perform strongly since then.”
Clarifying that it holds a strong relationship with Caliplay, Playtech labeled its Latin American partner as ‘a highly valued customer’ whilst stating that they have created ‘a highly successful and rapidly growing business’ together.
However, with the option being exercisable for 45 days following the approval of Caliplay’s audited accounts for Dec 31, 2021, Playtech believes that the option is no longer valid and has referred to the expiry taking place in its interim report for the six months ended June 30, 2022.
As a result, Playtech has referred the matter to English courts and has noted that it will continue to update investors as necessary.
The gambling tech group added: “Caliplay is a highly valued customer and partner of Playtech, and has been a highly successful and rapidly growing business. A declaration is being sought in order to provide clarity for both parties.”