Playtech and Caliplay Go to Court
Author:
Muhammad Gregory
Former betting partners Playtech and Caliplay will take their dispute to court after the companies have failed to come to an agreement about the termination of their partnership. The case will be heard in the English court system, but concerns the partnership of the companies in Mexico. Issues have been ongoing for several months, with a formal move to terminate the partnership dated October 2023.
Companies Playtech and Caliplay are now in a legal dispute over the severing of their years-long partnership. After an initial ruling in Mexico, Playtech has moved for English courts to make a decision on the matter.
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The History of the Dispute
The problems between the companies Playtech and Caliplay have been at hand for many months. They ultimately drove Caliplay to back out of the legal partnership in October 2023. Caliplay is going through legal proceedings in order to officially annul their deal, citing a broken business relationship between the two gaming companies.
Because Caliplay is a Mexican company, it was the Mexican court system that first took on the case. It claimed jurisdiction in the matter and began proceedings, issuing orders to both companies. Under the Mexican Court’s ruling, Playtech lost the rights that it had formerly held under the agreement between the two companies.
This was an unfortunate ruling for Playtech — and one they are currently fighting by turning to the English Court — and made even worse by some of the other initial rulings. For example, the court in Mexico decided that Playtech must suspend its rights to payment but continue providing services that it had agreed to offer Caliplay.
The companies’ initial agreement revolved around making certain software available to Mexican consumers. Caliplay is not only an online casino but also a sports betting platform and is operated by the larger firm, Grupo Caliente. Playtech was founded in Estonia and is now headquartered in the UK, on the Isle of Man.
Playtech is a software provider known for a large variety of technologies and games. It has developed everything from online table games software to bingo, live dealer programs, online slots, online sports betting platforms and more. With its world-recognized brand and high-caliber tech offerings, it seemed like an ideal partnership for Caliplay’s burgeoning platform.
The two companies entered into a mutually beneficial relationship to start with; Caliplay received access to new services for its customers while Playtech had the opportunity to expand its reach in Latin America, a region that is experiencing a significant amount of growth when it comes to online gaming.
Their agreement is well-established, however; it dates to 2014. In fact, the initial agreement is exactly what is being argued over now that Mexico has given its rulings on the conflict. Playtech argues that the rulings do not fall in line with the terms of the initial contract made nine years ago.
One key factor in that contract states that any legal issues between the two companies would be addressed in England rather than in Mexico. This is the reason that the matter has now been taken to the English court of law.
Playtech hopes that this will also allow them to stick to another stipulation of the contract, that fees be paid into a trust account rather than directly to Caliplay in the case of a disagreement. This would make it easier for Playtech to have the money returned, in case the English ruling is indeed on the side of Playtech and not Caliplay.
These fees would cover those owed in August and September 2023, and possibly up until the matter is fully resolved. Meanwhile, Playtech is also taking legal steps to attempt to suspend Caliplay’s court proceedings in Mexico, which may essentially void them if they are successful.
Playtech and Caliplay will likely not be the only companies dealing with international court proceedings in Mexico, as the country cracks down on gaming of all forms, threatening long standing contracts between a variety of developers and operators.
