BCLP advises Playtech plc on multiple litigation and arbitration proceedings and the revised terms of its strategic relationship with Caliplay

BCLP has advised longstanding client Playtech plc and its subsidiary (Playtech) on a long-running dispute with its commercial venture partner Caliplay Mexico (Caliplay) and multiple related parties, and the revised terms of its strategic relationship relating to Caliplay, including the settlement terms of the dispute.

In 2014, Playtech entered into a strategic agreement with Caliente, the Mexican retail casino operator which through its subsidiary, Caliplay, was seeking to build a presence in the Mexican online gaming and betting market. Caliplay, which principally operates through the website www.Caliente.mx, has since firmly established itself as Mexico’s #1 online gambling operator.  

In late 2022, a dispute arose between the parties over the interpretation of a contractual provision, leading to multiple litigation and arbitration proceedings in both the UK and Mexico. Since then, BCLP has advised Playtech, resulting in revised terms to the strategic agreement and a successful settlement for both parties. All proceedings have been paused pending the transaction’s closing, after which they will be dismissed. Conditioned upon anti-trust approval in Mexico, Playtech will own 30.8% of a new U.S. holding company of Caliplay. Playtech will also sign a new software license agreement, receive an additional $140 million in cash over four years, and have various other rights including standard stockholder rights.

The transaction is expected to close in Q1 2025, subject to relevant antitrust approval. Following the transaction, the Playtech group will continue its focus on its technology-led offering in high-growth B2B gambling markets with an accelerated growth plan and an extensive portfolio of strategic ventures.

Playtech

Playtech is a technology leader in the gambling industry with over 7,700 employees across 19 countries, delivering business intelligence driven gambling software, services, content and platform technology.

Caliplay

Caliplay, which operates through the website www.Caliente.mx, is Mexico’s #1 online gaming and live sports betting platform. 

The BCLP litigation, arbitration and corporate teams worked together across multiple jurisdictions to deliver a successful outcome.

The BCLP transactional team was led by Amit Parekh (Corporate Transactions) and Benjamin Lee, and also consisted of Aaron Lang, Doug Sunshine, Kevin Gamarra, Olivia Russell and Yaniv Grunberg (Corporate Transactions); Marcus Pearl and Jason Haislmaier, Ben Wheeler (Technology, Commercial and Government Affairs); Becky Nelson and Emilee Hargis (Antitrust, Competition and Trade). 

The BCLP London litigation team was led by Graham Shear (Business & Commercial Disputes) and Oran Gelb (Financial Services Disputes and Investigations), and also consisted of Andrew Street, Jason Alvares, Megan Smith, John Massey, Irina Tuca, Elisabeth Tsudikman, Léa Duly, Cydney Ault, Adriana Ciofu and Louis Clark (Business & Commercial Disputes); Lex Townsley (Financial Services Disputes and Investigations); Sam Brown and Sarah Platts (Antitrust, Competition and Trade); and Daniel Swinburn (Antitrust, Competition and Trade).

The BCLP London arbitration team was led by George Burn, and also consisted of Siobhan Abraham, Kevin Cheung, Agnieszka Bidzinska and Danielle Yap (Arbitration, Real Estate and Construction Disputes).