Playtech Needs Help from English Courts Because of Its Deal with Caliplay
Playtech PLC, one of the largest online gaming software suppliers in the world, isn’t satisfied with the lack of answers regarding its disagreement with one of its partners. English courts will help decide who is right in the disagreement between two industry giants.
Who is right?
As stated on Monday, Playtech hopes to obtain a declaration from the courts of England. The declaration concerns the long-lasting disagreement between Playtech and Caliplay regarding their strategic agreement.
As Playtech said, the company needs a declaration to find out if its partner, Caliplay, still has the option to retrieve the extra services fee element that has been included in the strategic agreement the companies signed.
Both have agreed upon this option, so they can define the amount of money that will be paid for additional services. If that option doesn’t prove successful, the independent investment bank will decide on the amount.
Both parties agree that Playtech will have a right to additional services fee until the end of 2034.
The calculated fee for the first six months of the partnership has been EUR 34.4 million. That period ended in June 2022, about seven months ago.
The main point of conflict between the two companies lies in the fact that they aren’t sure if the option is still exercisable. The agreed period of 45 days might pass, but it might not – the included parties seem unable to find common ground about the matter. Playtech is sure that the period has already expired, but Caliplay disagrees.
Two industry giants and abandoned plans:
Playtech became famous on the market by delivering unique cutting-edge solutions to some of the leading operators in the industry. The company was founded in 1999, and after more than a decade, it became an ultimate leader in the industry.
The company has a vast network of partners, and Caliplay is one of them. It is one of the leading operators in Mexico. Many famous suppliers in the industry, including Playtech, have noticed its rapid growth and success.
In March last year, Playtech abandoned its plans to merge Caliplay with a special purpose acquisition company, which would enable them to expand further in the U.S. market. The negotiations had been held with Caliente Interactive, and after that, both companies were determined to explore other options.
The Court in England will decide who was right in this disagreement. Until that, the players will continue to enjoy the products both companies released on the market.