Playtech is confident that its biggest client will eventually pay outstanding fees totaling €122m ($132m). [Image: Shutterstock.com]

Big sums at stake

Playtech believes that its biggest client will eventually pay outstanding fees totalling €122m ($132m) as a result of legal action. Mexican online casino and sports betting platform Caliplay has not paid B2B license fees since August 2023 and additional B2B services fees from July 2023 as a result of an ongoing dispute.

A trial will take place in October regarding the matter, with Caliplay trying to end its relationship with the gambling software giant. Playtech went ahead and included €86.5m ($93.6m) worth of outstanding fees in both its €1.7bn ($1.84bn) revenue and €235.8m ($255m) profit figures when reporting its full 2023 results on Wednesday as it believes that it is “highly probable” that it will get this money.

believes Caliplay wouldn’t risk the reputational damage of not paying

Playtech believes Caliplay won’t risk the reputational damage of not paying if a judgment goes against the operator. The total outstanding fees for this year so far are €35.8m ($38.7m).

Differing interpretations

The basis of the entire disagreement is opposing views about the validity of an option that would allow Caliplay to acquire Playtech’s 49% stake in the business. Mexico-based company Grupo Caliente controls the remaining equity and the two parties have worked together since 2014.

Playtech abandoned plans in July 2022 for a US stock exchange listing of Caliplay through a reverse merger.

Playtech claims that Caliplay missed the 45-day deadline after the finalization of its 2021 financial accounts to exercise the option. Caliplay contends that it did not expire, which is why Playtech went to an English court in February 2023 to get clarification on the matter.

Hoping to put the matter to bed

Playtech’s share price has languished since this issue first came to light; Jefferies analysts believe that investors could be wary about the impact of the dispute.

A Mexican court ruled in August that Playtech has to continue supplying its services and software to Caliplay despite not getting any remuneration for doing so and mandated that Caliplay place the fees into a trust account until a resolution is reached.

Playtech is still keen to maintain its relationship with Caliplay.

Even though the two sides are at loggerheads, Playtech is still keen to maintain its relationship with Caliplay. It hopes to quickly resolve the issue and continue working together into the future.