Playtech plc (LSE: LON:PTEC), a leading technology provider in the gambling sector, has secured approval from Mexican antitrust regulators for its revised agreement with Caliplay.
The company confirmed on Friday that all necessary regulatory clearances have been obtained, Investing.com reported.
The revised agreement with Caliplay is set to be finalized on March 31, 2025. This collaboration is expected to strengthen Playtech’s presence in both established and emerging regulated markets, leveraging its advanced, data-driven gambling technology across multiple product categories.
Established in 1999 and listed on the London Stock Exchange (LON:LSEG), Playtech employs over 8,300 individuals across 19 countries. The company specializes in providing gambling software, services, content, and platform solutions, spanning casino games, live casino, sports betting, virtual sports, bingo, and poker. Its flagship platform, Playtech ONE, integrates marketing tools, single-wallet functionality, customer relationship management (CRM), and responsible gambling features into a cohesive system.
Playtech’s business model revolves around partnerships with leading brands in regulated markets, supplying technology on a business-to-business (B2B) basis to top-tier online and retail operators, casino groups, and government-backed entities such as lotteries. Furthermore, Playtech owns and operates Snaitech, a key player in Italy’s online and retail sports betting and gaming sectors.
The announcement, which falls under the category of inside information in accordance with the UK Market Abuse Regulation, was made by Sandeep Gandhi, Playtech’s Head of Investor Relations. The company’s successful clearance in Mexico represents a crucial milestone, enabling it to advance its strategic initiatives and continue expanding in the global gambling industry.
Caliplay Initiates Legal Action Against Playtech
Despite receiving antitrust clearance, Playtech faces a legal challenge from Caliplay, which seeks to annul their contractual relationship. On August 22, 2023, Tecnología en Entretenimiento Caliplay, S.A.P.I. de C.V. (Caliplay), a major Mexican online casino and sports betting operator known as Caliente Interactive, filed a lawsuit in the 46th Civil Court of Mexico City against Playtech plc and its subsidiaries, Playtech Malta and Playtech Software Limited.
According to a press release from Caliplay, the lawsuit aims to nullify the contractual agreements between Caliplay, Playtech, and associated parties. The company asserts that the legal challenge is fundamental to the proper functioning of its regulated business in Mexico. As a result, Caliplay issued a public statement to update its customers and business partners and to provide further context following prior market announcements made by both parties in early February.
On August 28, 2023, the Mexican court acknowledged jurisdiction over Caliplay’s claim and issued several provisional measures pending a final ruling. These measures include the suspension of Playtech’s key contractual rights. However, to protect Caliplay’s customers and maintain business continuity, the court has mandated that Playtech must continue supplying software and services to Caliplay until a final decision is reached. Despite this ruling, Playtech’s right to receive direct payments from Caliplay for these services has been suspended.
Caliplay has expressed a desire for a swift resolution and remains open to engaging in discussions with Playtech to address and resolve outstanding disputes. Additionally, the lawsuit names Ron Yosef Samoaloff and the Public Registry of Property and Commerce of the State of Baja California as co-defendants.
The legal dispute introduces an element of uncertainty regarding the future of Playtech’s collaboration with Caliplay. Nonetheless, Playtech continues to advance its approved strategic initiatives in Mexico. Industry stakeholders and investors are expected to closely monitor further developments to assess their potential impact on Playtech’s operations and expansion strategies.
