Amaya Faces $290M Judgement Against PokerStars – Update

Dec 19, 2015
Amaya Faces $290M Judgement Against PokerStars – Update
Amaya Inc. addressed the news regarding its lawsuit involving the Commonwealth of Kentucky related to its PokerStars brand. The period in question is from 2006 to 2011, which was three years before its acquisition of the Rational Group brands. Amaya describes the action as “frivolous and without merit”. Franklin Circuit Court Judge Thomas Wingate recently handed down its ruling in favor of the Commonwealth of Kentucky and awarding it $290 million. There is some question as to where the judge came up with this outrageous figure as it's far beyond the aggregate deposit made to PokerStars by Kentucky players during that time. Although Amaya intends to appeal, the company says it will go after PokerStars' former owners if they lose in appeals court. Amaya acquired Full Tilt and PokerStars from Oldford Group Limited, the parent company of Rational Group, in August 2014. The statements reads: “This civil proceeding was initially filed in 2010 under an antiquated 18th century Kentucky statute. The Commonwealth claims that it is entitled to recover alleged losses of Kentucky residents who played real-money poker on the PokerStars website during the period between October 12, 2006 and April 15, 2011. A similar action filed against PokerStars in Illinois was dismissed by that court earlier this year. “During the five year period at issue, PokerStars generated aggregate gross revenues in the Commonwealth of Kentucky of approximately US$18 million. Nonetheless, the Commonwealth sought an award as high as US$290 million and requested it be trebled. The trial court subsequently indicated that this amount is incorrect and has not yet entered a final order awarding damages. Any such final order would be subject to appeal. “Amaya intends to vigorously dispute any liability that may be ordered at the trial court level, and believes that there are a number of compelling legal arguments reserved for consideration, including, without limitation, the lack of standing to bring this proceeding in the name of the Commonwealth and the Court's failure to properly apply the law. “To the extent the PokerStars entities may be ultimately obligated to pay any amounts pursuant to a final adjudication following exhaustion of all appeals and other legal options, Amaya intends to seek recovery against the former owners of the PokerStars business.”
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