This article provides an analysis and overview of the ongoing dispute between Playtech and Caliplay. Despite the disagreement, Playtech acknowledges Caliplay as a valued customer and partner, highlighting its significant success and rapid growth. The dispute revolves around whether Caliplay has the option to redeem an additional services fee as part of their agreement.
Overview of the Dispute:
Playtech and Caliplay are currently embroiled in a disagreement over an additional services fee outlined in their agreement. The specific issue at hand is whether Caliplay has the right to exercise this option or if it has already expired. The resolution of this matter would require a declaration to provide clarity for both parties involved.
The Structured Payment Option:
The additional services fee in question was designed to be either mutually agreed upon by Playtech and Caliplay or determined by an independent investment bank. This bank would assess the value of the additional fee based on Playtech’s entitlement to receive additional services until December 2034. The half-year interim report for the six months ended June 30, 2022, reveals that the service fee amounted to €34.4 million ($37.1m). Despite this, Caliplay has not yet exercised the payment option, leading to differing opinions regarding its expiration.
Financial Performance and Growth:
Playtech emphasizes the strong performance of Caliplay as a highly successful and rapidly growing business. While specific financial details beyond the service fee are not provided, it is implied that Caliplay’s positive performance has been consistent since June 2022.
Expiration of the Option:
According to Playtech, the payment option is exercisable within 45 days following the approval of Caliplay’s audited accounts for the year ended December 31, 2021. In its half-year interim report, Playtech states that the option has expired. However, Caliplay holds the opposite view, asserting that the option remains valid and has not yet been utilized. This conflicting interpretation forms the basis of the dispute between the two parties.
Playtech’s Partnership with Paddy Power:
In a separate development, Playtech recently extended its 10-year betting terminal deal with Paddy Power. This agreement solidifies Playtech’s exclusive position as the provider of Self Betting Terminals for Paddy Power’s machines in both Ireland and the UK. This successful collaboration further underlines Playtech’s position as a significant player in the industry.
The ongoing dispute between Playtech and Caliplay centers on whether Caliplay has the right to exercise an additional services fee as part of their agreement. While Playtech considers the option expired, Caliplay maintains that it remains valid. The resolution of this disagreement is crucial for both parties to obtain clarity. Playtech’s recent partnership extension with Paddy Power demonstrates its continued success in the market. As the situation unfolds, further updates will shed light on the outcome of the dispute and its implications for both Playtech and Caliplay.