Playtech investors may still be scratching their heads in confusion about why Tecnología en Entretenimiento Caliplay (TEC) is suing the gambling software development company — seeking to end Playtech’s involvement in their joint online gambling brand, CaliPlay. That confusion may be happening because, on Oct. 5, Playtech told investors the company would update them “as necessary” about the case.
Yet, as of today, Playtech (Playtech PLC 410,80 -2,00%) hasn’t issued any new press releases about the lawsuit TEC says it filed on Aug. 28 in the 46th Civil Court of Mexico City. Since both entities issued statements about the case on Oct. 5, Playtech’s stock has dropped nearly 8%.
Playtech is a familiar name to US online gamblers because of its online casino live dealer offerings, software used by operators, and its investments in online casino and sportsbook operators.
TEC, however, may only be known to Illinois residents who expected to see CaliPlay enter the online sports betting marketplace there. While Illinois gaming regulators did approve CaliPlay’s standalone online sportsbook license, the operator never entered the marketplace.
However, TEC is a significant brand in Mexico through its online casino and sportsbook site, Caliente Interactive.
That’s the reason TEC said it was taking Playtech to court:
The claim seeks the annulment of the legal relationship between Caliplay, Playtech, and related parties contained in various contractual agreements. As such, it is directly relevant to the running of Caliplay’s regulated business in Mexico.
Oddly, TEC said the court ordered Playtech to “continue providing software and services to Caliplay pending final resolution of the claim. This is despite the suspension of other rights, including Playtech´s right to receive payments directly from Caliplay for those services.”
CaliPlay, Playtech Were a Good Match?
Playtech’s press release seemed to show company leaders were confused about why the CaliPlay venture may end.
Playtech stated on Oct. 5:
[Tecnología en Entretenimiento] Caliplay is a highly valued customer and partner of Playtech and this has been an extremely productive relationship for both parties.
Because Playtech said it only learned about the lawsuit through TEC’s press release, it didn’t have any case updates for investors.
Playtech said it couldn’t access the court records and hadn’t “been served with any proceedings.”
Bonus, too, couldn’t access the Mexican court’s records today.
The error message read:
The owner of this website (www.poderjudicialcdmx.gob.mx) has banned the country or region your IP address is in (US) from accessing this website.
The searcher, Heather Fletcher, lives in Philadelphia.