Flutter Loses Kentucky Appeal in $ 870 Million Lawsuit Against PokerStars

By Scott Bowen,
Editor at online-gambling.com

Scott Bowen Editor at online-gambling.com

Scott Bowen is a casino expert and editor with many years of experience in the gambling industry. He is one of the most valuable members of our team at online-gambling.com. Bowen specializes in writing on a variety of subjects, including roulette, blackjack, video poker, sports betting, and more.

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Last updated: April 5, 2021

The Kentucky Supreme Court rejected Flutter Entertainment’s request to review the state’s lawsuit against its branch PokerStars.

Flutter Entertainment has rejected response to the December 17, 2020 ruling regarding a lawsuit made by the Kentucky state on the Stars Group subsidiaries in 2010.

In a December 2020 ruling, the Supreme Court of Kentucky makes a judgment against The Stars Group. It was purchased by Flutter this year. It condemned the 2015 ruling in the 2010 case on behalf of Kentucky people who claimed damages at the PokerStars’ website.

The charge against the FTSE100 concerns the Kentucky Court of Appeals, which overturned its decision against PokerStars, and that Kentucky state owed $ 870 M for illegal online poker bets made b/t 2006 to 2011.

More About the Court Order

Commenting on the recent events, the company said, “The Kentucky Supreme Court today rejected Flutter’s request to review the December 17, 2020 ruling in a lawsuit filed by Kentucky State against some affiliates From the Stars Group in 2010 to the merger with Flutter.”

The very long controversy concerns the continuation of PokerStars’ actions in the United States, which was banned by the UIGEA of 2006, and most betting operators in the United States left the market.

Despite this situation, PokerStars is still providing its services to United States customers and stated that poker is a gray area within the UIGEA legal framework.

In 2011, the US DOJ expanded the powers of the UIGEA to include cross-border digital transactions and deposits, effectively banning online poker. It forced PokerStars and its competitors to suspend their services.

The Commonwealth of Kentucky has filed a lawsuit on PokerStars, quoting the 18th Century Indemnity Act, which said courts have the power to seize funds from unauthorized betting.

In a 2015 judgment, the Court charged a fine of about $ 290 million, which then increased to $ 870 million, plus 12% interest per year.

The Kentucky PokerStars show resumed last December when the Court confirmed the Commonwealth’s right to sue.

The Kentucky decision was upheld when Flutter made an $ 11 B union with The Stars Group Inc. to become the most valuable company in the worldwide gaming business.

TSG and Flutter argued that the PokerStars Kentucky dispute was never viewed as a possible liability.

What Flutter Said About This Matter

Flutter said in a statement that they are not happy with the rejection and therefore, they will continue to vehemently oppose the reason behind this decision.

With legal counsel, Flutter will proceed to review its place on the ruling, including the option to appeal the decision to the United States Court and other lawful rights that it may have at a later date.

Flutter stays confident that any price finally paid to fix this case will only be a small part of the decision. Further details will be given at an appropriate time, however, whether this issue will be solved as Flutter expects it to be is yet to be seen.