Despite the dispute, Playtech says Caliplay remains a valued customer and partner, and is a “highly successful and rapidly growing business.”
Playtech notes a declaration is being sought to provide clarity for both parties, with the disagreement relating to whether Caliplay has the option to redeem an additional services fee of the parties’ agreement.
This additional option was structured in a way that would either be agreed upon by both parties, or failing that, determined by an independent investment bank.
The bank would value the additional fee on Playtech’s current entitlement to receive additional services until December 2034.
For the six months ended 30 June 2022, Playtech says this service fee was €34.4 million ($37.1m), and the business has, purportedly, performed strongly since then.
The payment option is exercisable for 45 days following the approval of audited accounts of Caliplay for the year ended 31 December 2021.
As such, Playtech feels the option has expired – referring to this expiry in its half-year interim report for the six months ended 30 June 2022.
Though Caliplay has not yet sought to exercise this option, it has made it clear it does not believe the option has expired. This is the basis for the dispute between both parties.
Last week, Playtech extended its 10-year betting terminal deal with Paddy Power. The deal sees Playtech remain the exclusive provider of Self Betting Terminals for Paddy Power’s machines in Ireland & the UK.