Amaya appeals against ?580m Kentucky fine
Operator files a notice of appeal and posted a ?70m bond to stop the order being enforced
Amaya has taken the first step in its bid to overturn the “absurd” ?580m fine imposed by a Kentucky court, filing a notice of appeal and posting a ?70m bond to stop the order being enforced while the process rumbles on.
The Commonwealth of Kentucky filed a case against PokerStars back in 2010 demanding the firm returned losses incurred by players in the state between 2006 and 2011, when the operator continued taking bets despite the enactment of UIGEA.
In the ruling, the judge imposed a ?195m award in favour of the state but then trebled that amount to ?583m, in stark contrast to the same court’s earlier ruling that determined damages should be based on the net loss of players.
PokerStars claims to have generated gross revenues of around ?12m from players in the state during the period.
Amaya said the ?70m bond included ?25m in cash and credit letters amounting to ?21m, and that it planned to recoup any losses or potential losses from PokerStars’ former owners. In January, the firm requested access to a ?210m escrow fund established as part of its deal to acquire the Rational Group back in 2014.
However, Amaya said Stars’ previous owners have disputed its claims, but expects them and the release of the escrow funds to be “resolved in accordance with the provisions of the merger agreement and escrow agreement”.
The operator added there could be no assurance its appeal will be successful or that its notice of claim will result in any amounts in the escrow fund being remitted, or that any of its potential losses will be reimbursed by Stars’ former owners.
Kentucky has filed suits against more than 140 online poker operators including bwin.party, which reached a ?10m settlement with the state in July 2013.