Caliplay starts legal proceedings against Playtech in Mexico

Calipay has launched legal proceedings against Playtech in Mexico with the view to annulling the business relationship between the pair.

Caliplay is the joint venture business between Playtech and Caliente, with the latest legal measure adding to a series of disputes this year.

Caliplay has started proceedings in the 46th Civil Court of Mexico City against Playtech, as well as its subsidiaries Playtech Malta and Playtech Software Limited.

The JV operator said it is looking to end the legal relationship between itself, Playtech and other related parties named in various contractual agreements.

The firm added it was making the announcement to “ensure that its customers and business partners are made aware of the position”.

Additionally, Caliplay confirmed in a statement that on 28 August, the Mexican court accepted jurisdiction over the claim and issued a number of interim orders pending the final resolution of the claim.

These include the suspension of “key rights held by Playtech”.

Playtech was also been ordered to continue providing its software and services to Caliplay in one of the interim orders.

That order comes despite the suspension of Playtech’s other rights, including the right to receive payment directly from Caliplay for those services.

Caliplay’s statement added: “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.”

Responding to Caliplay’s statement, Playtech said: “Caliplay is a highly valued customer and partner of Playtech and 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.

“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.”

In February, Playtech confirmed its Playtech Malta arm had commenced court proceedings in England regarding a redemption option in its agreement with Caliplay.

This related to whether Caliplay holds an option to redeem an additional services fee element of the existing strategic agreement.

At the time, Caliplay said it had received no warning over Playtech’s decision to approach the courts.