Playtech has renegotiated its terms with Mexican gambling operator Caliente, securing a 30.8 per cent equity stake in Caliente Interactive, the new holding company for Caliplay, incorporated in the United States.
Under the terms of the deal, the London-listed gambling tech provider will also gain the right to appoint a director to Cali Interactive’s board, extend its B2B software license and services agreement for eight years, and receive an additional $140m (£106m) from Cali Interactive, phased over four years.
Playtech’s relationship with its Mexican client has been troubled. Caliplay previously withheld payments during an ongoing legal dispute.
However, the company confirmed on Monday that Caliplay has resumed payments, with more than €150m (£127m), approximately 80 per cent of the total, already settled.
The deal is conditional on approval from Mexican antitrust regulators and is expected to close in the first quarter of 2025.
Playtech chief executive Mor Weizer said: “During the past nine years, we have worked closely with Caliplay to create a successful and rapidly growing digital business in Mexico.
“The revised arrangements mark the beginning of an exciting new chapter that will build on the impressive progress to date, with a view to driving significant further growth for Cali Interactive in the future.
He added: “The agreement with Caliente and Caliplay underlines the attractiveness of Playtech’s leading proprietary technology. With a strong position in Mexico and exposure to other fast-growing markets in the Americas and Europe, we remain well-placed to deliver strong growth in our B2B business in the coming years.”
Emilio Hank, Chairman of Caliplay, said: “We are focused on growing Caliplay, leveraging our core strengths and Playtech’s leading technology to broaden our geographical footprint, as we continue in our mission to give the best gaming experiences to our customers in Mexico and beyond.”
Playtech also posted a trading update, saying it now expects 2024 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to be slightly ahead of current market forecasts, mainly driven by a “strong performance” within its B2B division.
Flutter Entertainment recently announced a potential £2bn swoop on Italian betting firm Snaitech, the consumer division of Playtech.