The dispute is about whether Caliplay still has the option to redeem the additional services fee element of the strategic agreement between the two parties. The option allows Caliplay to pay Playtech an agreed amount or have an independent investment bank determine the value of Playtech’s entitlement to the additional services fee until December 31, 2034. In the six months leading up to June 30, 2022, the services fee amounted to €34.4m (£30.8m/$37.1m), which is higher than the €22.3m for the same period the previous year. Playtech stated in their interim report for the period ending June 30, 2022, that the option has expired. However, Caliplay believes that the option has not yet expired.
The option is exercisable within 45 days following the approval of Caliplay’s audited accounts for the year ending December 31, 2021. Playtech has sought clarification from the English courts regarding the arrangement, considering Caliplay’s position. Playtech values Caliplay as a highly successful and rapidly growing business, and hopes to obtain clarification through the court process.
In the past, Playtech had plans to spin off Caliplay and merge it with a special-purpose acquisition company (SPAC) to take it public. The SPAC would also partner with a leading media business targeting Latin American customers in the US market. However, due to significant deterioration in capital market conditions, Playtech abandoned these plans in July 2022. Playtech is still working on a business targeting Hispanic customers in the US using the Caliente brand, which is a market leader in Mexico.
