REG - Playtech PLC - Update re: Caliplay

PlaytechAnnouncement

01/11/2023 17:30

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RNS Number : 0979S  Playtech PLC  01 November 2023

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

FOR IMMEDIATE RELEASE

 

1 November 2023

 

Playtech plc

 

("Playtech", the "Company", the "Group" or the "Playtech Group")

 

 Update re: Caliplay

 

On 5 October 2023, Tecnologia en Entretenimiento Caliplay, S.A.P.I. de C.V.
('Caliplay') announced that Caliplay had issued legal proceedings in Mexico
against, amongst others, Playtech and some of its subsidiaries.

 

Caliplay has been and remains a very highly valued customer of the Playtech
Group. During the past nine years, both parties have worked closely together
to create a successful and rapidly growing digital business in Mexico. This
has been an extremely productive relationship for both parties, and resolving
the commercial dispute is a priority for Playtech.

 

The disagreement initially centred on whether an option held by Caliplay to
redeem the additional services fee element of the strategic agreement has
lapsed, and this is the subject of ongoing proceedings in the English Courts,
with Playtech seeking a declaration from the Court on whether the option has
expired. The trial of that issue is scheduled to take place in London in
October 2024.

 

On 5 October 2023, Playtech noted Caliplay's announcement that it had issued
legal proceedings in Mexico against members of the Playtech Group. Playtech
has now accepted service of those proceedings to enable the Group to respond
to them and is now able to update on the content of the Court filings in
Mexico. The actions taken by Caliplay in the Mexican Court proceedings
contravene the contractual agreements in place since the strategic agreement
was originally established in 2014, in particular the agreement between the
parties that any disputes would be resolved in England.

 

One of the primary interim measures that the Mexican Court granted was that
all fees due to the Playtech Group under its arrangements with Caliplay are to
be paid into a Court-mandated trust account in Mexico rather than paid
directly to the Group. Consequently, the Company understands that the fees due
to the Playtech Group for August (in part) and September have been paid into
this Court-mandated trust account. Other interim measures the Mexican Court
granted include the suspension of many rights and protections under the
agreements.

 

In order to protect its position and ultimately progress towards a resolution
with Caliplay, Playtech has taken the following steps:

 

-     In England, PT Services Malta has applied for and obtained interim
anti-suit injunctions from the English Court against Caliplay. These
injunctions compel Caliplay to stop taking any further steps in the Mexico
proceedings, as litigation should not have been commenced in that
jurisdiction.

-     In Mexico, PT Services Malta has obtained separate interim measures
from a Mexico court ordering Caliplay to discontinue the case it commenced in
Mexico against the relevant Playtech entities, so that the dispute can be
resolved in the appropriate and agreed forum in England. Those measures also
include orders for Caliplay to comply with the terms of the Framework
Agreement between the parties (which contains most of the provisions which had
been suspended by the Mexican Court).

 

 

Playtech will continue to take such other steps as it considers necessary to
enforce its rights under its agreements with Caliplay and to lift the interim
measures obtained by Caliplay.

 

Caliplay remains a highly important customer for Playtech, and the Company is
determined to resolve this matter as quickly as possible. In order to do so,
Playtech is committed to maintaining an open dialogue with Caliplay to discuss
a path forward.

 

The Company will update shareholders further as appropriate and necessary.

 

- Ends -

 

For further information contact:

 

 Playtech plc                                 +44 (0) 20 3805 4822

 Sandeep Gandhi, Head of Investor Relations

 c/o Headland

 Headland (PR adviser to Playtech)            +44 (0) 20 3805 4822

 Lucy Legh, Jack Gault

 

About Playtech

 

Founded in 1999 and premium listed on the Main Market of the London Stock
Exchange, Playtech is a technology leader in the gambling industry with over
7,300 employees across 19 countries.

 

Playtech is the gambling industry's leading technology company delivering
business intelligence driven gambling software, services, content and platform
technology across the industry's most popular product verticals, including,
casino, live casino, sports betting, virtual sports, bingo and poker. It is
the pioneer of omni-channel gambling technology through its integrated
platform technology, Playtech ONE. Playtech ONE delivers data driven marketing
expertise, single wallet functionality, CRM and responsible gambling solutions
across one single platform across product verticals and across retail and
online.

 

Playtech partners with and invests in the leading brands in regulated and
newly regulated markets to deliver its data driven gambling technology across
the retail and online value chain. Playtech provides its technology on a B2B
basis to the industry's leading retail and online operators, land-based casino
groups and government sponsored entities such as lotteries. Playtech directly
owns and operates Snaitech, the leading sports betting and gaming company in
online and retail in Italy.

 

 

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