Playtech-Caliplay approval, Allwyn new loan

Welcome to the Weekend Report, your authoritative source for the latest developments in the gambling industry. In this edition, we delve into the approval of the revised Playtech and Caliplay deal in Mexico, Allwyn’s significant new term loan, and Pagcor’s decisive action against offensive advertising in the Philippines.

Playtech-Caliplay Strategic Agreement: A New Era in Mexico

Playtech, a leader in the gaming technology sector, has recently achieved a pivotal milestone by securing antitrust approval in Mexico for its revised strategic partnership with Caliplay. Officially announced on March 21, this approval enables both entities to implement their planned enhancements, effective March 31.

This development marks a crucial turning point following a prolonged dispute between the parties concerning unpaid service fees linked to Caliplay’s options for redeeming additional services under their original agreement. The historical context of this relationship has been fraught with challenges, yet both companies are now poised to move forward.

Back in September of the previous year, Playtech and Caliplay sought to resolve their differences, culminating in a new agreement that reinstated Caliplay’s payment of disputed software and services fees. Key components of this revised deal include:

• Playtech acquiring a substantial 30.8% stake in Caliplay’s newly established US holding company, Caliente Interactive.
• The initiation of a revamped eight-year B2B software licensing and services agreement.

This partnership not only stabilizes relations between Playtech and Caliplay but also positions them strategically within the evolving landscape of the Mexican iGaming market.

Allwyn International: Financial Strength through New Term Loan

In a significant financial maneuver, Allwyn International has secured a seven-year term loan B facility amounting to €475 million (£398 million/$515 million). This deal, which underscores Allwyn’s strong investor appeal, was confirmed late last week following a successful initial syndication process.

The transaction was brokered under a new senior facility agreement, with Allwyn Entertainment Financing (UK) designated as the borrowing entity. Additionally, Allwyn has approved a $75 million add-on to its existing USD term loan B, set to mature in 2031.

The proceeds from these financial instruments are earmarked for:

• Repaying existing debt obligations.
• Supporting general corporate purposes.
• Covers transactional fees and expenses.

Kenneth Morton, CFO of Allwyn, expressed satisfaction with the transaction, highlighting it as a testament to investor confidence in Allwyn’s credit narrative across both sides of the Atlantic. He emphasized the company’s commitment to optimizing a diversified and resilient capital structure.

BOS Strengthens Advocacy with BetConstruct Membership

In the Nordic region, the Swedish Trade Association for Online Gambling (BOS) has welcomed BetConstruct as its latest member. This technology and gaming solutions powerhouse is already operational in Sweden through its B2C brand VBET, which holds a local license.

BetConstruct’s membership aligns with its strategy to support the growth of the iGaming sector in Sweden, fostering a collaborative environment among key industry stakeholders. Shacke Manukyan, head of compliance at BetConstruct, stated, “This collaboration allows us to engage with industry leaders to promote responsible gaming, innovation, and a fair competitive landscape in Sweden.”

BOS Secretary General Gustaf Hoffstedt echoed these sentiments, noting that BetConstruct’s inclusion enhances the association’s expertise in both B2C market dynamics and as a significant game supplier.

Rush Street Interactive Expands Leadership with Former Governor

In a strategic enhancement of its board, Rush Street Interactive has announced the appointment of Jack Markell, the former governor of Delaware. Markell has a distinguished background, having served as state treasurer before his gubernatorial tenure, in addition to holding ambassadorial roles in Italy, San Marino, and the Organisation for Economic Cooperation and Development in France.

Prior to his extensive public service, Markell had a successful career in private enterprise, including executive positions at Comcast, Nextel, and McKinsey & Company. Richard Schwartz, CEO of Rush Street Interactive, expressed excitement over Markell’s addition, stating, “His diverse experience in both business and government will prove invaluable as we broaden our reach across the Americas and elevate our service offerings.”

Pagcor Enforces Advertising Standards in Philippine Gaming Sector

In a significant regulatory move, the Philippine Amusement and Gaming Corporation (Pagcor) has instructed one of its licensed operators to withdraw advertising from an online television program deemed offensive. While the program’s title remains undisclosed, Pagcor revealed it featured inappropriate content, including bra-less appearances.

This decisive action underscores Pagcor’s commitment to maintaining the integrity of the local gaming industry. The regulator was alerted about the controversial program through an online podcast, emphasizing the importance of responsible advertising in the gaming sphere.

Pagcor clarified that the licensee involved is not affiliated with the production of the online program. Jeremy Luglug, assistant vice president for the electronic gaming and licensing department at Pagcor, reinforced their stance, stating, “We will not tolerate any of our licensees supporting such demeaning and sexually explicit content.”

This incident serves as a reminder of the need for robust advertising standards and the responsibility that comes with promoting gaming services in a conscientious manner.