Mexican betting group Caliente is moving past its difficult legal saga with Playtech, not only driving revenue for its joint-venture partner but also finding new B2B allies.

The company is embarking on a multinational, pan-Latin American project with ‘PlaySports’, the sports betting solutions division of a new International Gaming Technology (IGT) under the ownership of Apollo Global.

Starting in Mexico, the partnership will then shift to the markets of Antigua, Argentina, Aruba, Brazil, Ecuador, Panama, Paraguay and Uruguay. This process, which the firms have noted will likely take some time, will begin with 42 Caliente sportsbooks in Mexico, such as the one at the Caliente Hipódromo, Tijuana.

Caliente already has a strong footprint in various Latin American markets, including some of the ones listed above like Brazil, Paraguay and Uruguay.

The partnership comes at a crucial time for Latin American sports betting, with Brazil eight months into the launch of its regulated online market while others like Paraguay have also moved to modernise tier markets.

“IGT PlaySports is thrilled to expand our technology and service footprint to Mexico and Latin America through our multi-year retail and trading services agreement with Caliente, one of the largest sports betting operators in the region,” said Joe Bertolone, IGT SVP Sports Betting.

“We’ve worked hand-in-hand with the Corporación Caliente team to deliver a future-proofed solution and a complementary trading services program that will meet regional needs, scale with future opportunities and captivate sports fans.”

Caliente’s role in IGT’s solo mission

The deal is also significant for being one of IGT’s first deals under its new operating structure following the spin off from its legacy lottery division, which has now rebranded as Brightstar and continues to supply solutions to various state-owned lotteries.

IGT’s Gaming and Digital division – the entity that continues to trade as IGT and signed the deal with Caliente – was sold to Voyager Parent, an affiliate of global hedge fund Apollo Global Management Inc.

The deal shows that IGT is keen to make progress and drive forward under its new gaming-focused structure. It may also indicate that sports betting will be crucial to its growth plans, given the nature of the Caliente deal.

Joe Bertolone, IGT SVP Sports Betting, said: “IGT PlaySports is thrilled to expand our technology and service footprint to Mexico and Latin America through our multi-year retail and trading services agreement with Caliente, one of the largest sports betting operators in the region.

“We’ve worked hand-in-hand with the Corporación Caliente team to deliver a future-proofed solution and a complementary trading services program that will meet regional needs, scale with future opportunities and captivate sports fans.”

Caliplay consideration

The one final factor to consider here is that at a surface level there are some similarities between Calitente’s new deal with IGT and its long-running partnership with Playtech. Both are deals between a B2C firm, Caliente, and B2B firms, Playtech and IGT, focusing on the sports betting sector in the Americas.

Playtech’s deal with Caliente did not run smoothly for some time, however. The duo had agreed to launch a joint venture, an online sportsbook christened Caliplay, but Caliente would later annually serve fees and the duo subsequently disputed contract terms.

A year and a half long legal dispute would ensue with claims filed in both English and Mexican courts. This would finally be resolved in September 2024, with Playtech recouping €150m in service fees and securing a 30.8% equity interest in Caliente Interactive, a holding company which owns Caliplay in the US.

Since then, Caliente Interactive has stood out as a key asset for Playtech, with the brand’s performance in Q2 driving the London-based, LSE-listed tech firm’s adjusted EBITDA up to €90m (Q2 2024: £76m).

Caliente’s position as one the leading gambling firms in Mexico, a key market in its own right, as well as a foothold across various other Latin American markets, likely make the firm a valuable partner for B2B firms like IGT and Playtech – despite any previous tricky legal histories or considerations.