Legal Battle Over Service Fees Dispute Intensifies Between Playtech and Grupo Caliente
The long-standing conflict between gaming manufacturer Playtech and its Mexican partner Grupo Caliente escalated last month when Grupo Caliente filed a lawsuit in Mexico. Playtech claims it will not respond to the ruling, asserting that legal action is invalid unless it is initiated in the UK.
Tensions have been rising between Playtech and Grupo Caliente, stemming from a financial dispute over service fees. The two entities formed a joint venture called Caliplay, but disagreements arose earlier this year about certain provisions in the contract.
The controversy centers around Playtech's assertion that Grupo Caliente owes it certain fees. In retaliation, a Mexican court judge decided to hold the disputed fees in a trust account until the matter could be resolved. The judge also revoked specific protections offered to Playtech under the previous contract.
Playtech has obtained anti-suit injunctions from a court in England, effectively overturning the Mexican court's rulings. This legal maneuver is intended to counteract the actions taken by the Mexican court and maintain Playtech's contractual protections.
Both companies are set to face off in a British court in October 2024 in an attempt to reach a resolution of their financial dispute and to clearly interpret contractual obligations.
Standing Their Ground
Playtech argues that Grupo Caliente is violating the terms of the contract signed when they established the joint venture. The contract states that any legal disputes must be resolved through the British legal system.
As a result of the anti-suit injunctions, Grupo Caliente is now barred from pursuing legal remedies in Mexico. They have also been ordered by a Mexican court judge to cease their ongoing lawsuit in that country.
Large sums of money are at stake for both companies. Playtech has not yet disclosed a specific figure, but previous information suggests the service fees totaled more than $35 million for the first half of last year.
Since then, additional payments have been added to the court-ordered trust account.
Expanding Reach
Playtech has recently ventured into a partnership with FanDuel to integrate live casino content into FanDuel's gambling platform in Canada. By leveraging Playtech's expertise in providing live casino content, FanDuel hopes to provide a more immersive gaming experience to its Canadian users. This collaboration aligns with FanDuel's broader strategy to become a dominant player in Canada's online gambling market.
For Playtech, this partnership represents a significant opportunity. It will help them strengthen their foothold in North America and capitalize on the ever-changing market. Connecting with a leading gaming operator in the area could pave the way for significant growth in the industry.
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Source: www.casino.org
