Clicky

Flutter to Appeal $1.3bn Penalty Slapped on PokerStars in Kentucky - PennsylvaniaPoker.com News : PennsylvaniaPoker.com News
the-empty-court-room-of-the-kentucky-supreme-court
Published on
Update on
Author
  • Flutter is facing a $1.3 billion penalty over PokerStars’ operations between 2007 and 2011 which allegedly inflicted hundreds of millions of poker losses on Kentuckians
  • The company said that it will challenge the penalty in court citing dated legislation as the reason why and PokerStars already settling the matter in 2018 under its previous owner
  • Flutter reassured investors that they have nothing to worry about and the company will settle the penalty with a much smaller sum if it has to pay in the end

An already settled case against PokerStars, and the company’s current owner, Flutter Entertainment, has been reinstated by the Kentucky Supreme Court, with the court deciding that Flutter and PokerStars are still subject to a $1.3 billion penalty which was originally settled by the Kentucky Court of Appeals in 2018.

Based on this new ruling, the Supreme Court is reinstating a previously judgment from the Franklin Circuit Court, and upholding a verdict that PokerStars had indeed facilitated illegal offshore gambling, allegedly costing Kentucky residents over $3000 million in net losses.

Commenting on the ruling, Kentucky Governor Andy Beshear said that justice has been dealt and that the penalty would allow the state to emerge from what he described as a painful economic downturn brought on by the covid-19.

However, Flutter Entertainment has already sought legal advice, and the company is not convinced that the reinstatement of the penalty is constitutional or in line with modern legal precedent.

Flutter Reassures Investors, Prepares to Appeal Penalty

Originally, the case was settled in 2018 after PokerStars’ parent company at the time, The Stars Group, appealed the judgment rendered by the Franklin Circuit Court successfully. In the original verdict, the court found PokerStars to be a facilitator of illegal offshore gambling in the period between 2007 and 2011.

According to the court’s statement at the time, PokerStars had collected almost $300 million in cash losses from Kentuckians, but based on the company’s record of the time, PokerStars’ gross gaming revenue for the period was $18 million, hardly the amount stated by the court.

Furthermore, PokerStars does not collect losses, it collects rake fees that it uses to host games and support tournaments. Based on this, Flutter Entertainment has said that it is unlikely for the company to have to pay the full size of the penalty which is $870 million and 12% compound annual interest.

Another matter that Flutter brought up was that the legal basis on which the court’s argument is based is centuries old leaving an opportunity for Flutter to challenge it successfully.

Overall, the company said that it would seek to appeal the verdict and reassured investors that they should expect no issue with the company’s shares and long-term prospects. In the Supreme Court stated, however, the state argues that “The Commonwealth of Kentucky has losses due to PokerStars’ illegal internet gambling criminal syndicate. The amount recovered in this case may not cover the actual cost suffered by the Commonwealth of Kentucky.”

Flutter will certainly seek to challenge this interpretation.

Latest Headlines

Pennsylvania iGaming Revenues Hit $100M, Poker Remains Slow

Pennsylvania’s iGaming revenue hits $100 million in July as poker continues to bring up the rear Slots and table games led the way, with Hollywood Penn National and Rivers Philadelphia accounting for 67% of the total revenue PokerStars PA drew the biggest share of poker action, although WSOP PA has now wrapped its first bracelet […]

WSOP PA Announces $50K Depositor’s Freeroll

Following WSOP’s successful soft launch in Pennsylvania, the platform is launching its first promotions Players will be able to gain entry into the World Series $10,000 Main Event in Las Vegas if they place first or second in the upcoming $50K Depositor’s Freeroll A third ticket will be awarded randomly to one lucky player who […]

WSOP’s Launch is on the Cards for Pennsylvania

WSOP may finally be arriving in Pennsylvania, but will that change the current balance of powers PokerStars PA remains the dominant card room in the Keystone State for months now Borgata/BetMGM’s entry was modest, and revenue continues to remain low as the network targets new players The Keystone State may have a third poker operator […]

PA Online Casinos and Poker Rooms Dominate Sports Betting

Casinos and poker have posted the strongest gaming results in May, with a cumulative $110 million in gross revenue  Sports betting continues to slow down as the Super Bowl and March Madness season are over Gaming remains the biggest driver of revenue for regulated gambling markets  Pennsylvania’s online casino results continue to dwarf sports betting […]

DoJ Names Billy Joe Taylor as Defendant in $88M Medicare Fraud Scheme

Up-and-coming poker personality Billy Joe Taylor was indicted on fraud charges alleging that he defrauded Medicare of $88 million The alleged fraud happened through Taylor’s testing laboratories which DOJ suspects abused COVID-19 relief funds and other government incentives Investigators have brought a total of 14 defendants on charges of defrauding Medicare, but Taylor’s alleged involvement […]

Similar PA Casinos Post

PokerStars Launches Largest-to-Date PASCOOP on Sunday, April 18

PASCOOP is returning with 120 events and $2 million GTD prize money on Sunday, April 18PokerStars PA remains the sole card room in Pennsylvania two years since online poker launched in the state The card room has hosted no fewer than 11 poker tournament and series in the Keystone State This Sunday, April 18, PokerStars […]

PokerStars Dominates Results in Pennsylvania as Lone Operator

PokerStars year-over-year results continue to show strength as the company remains the sole player in the Keystone State February was the weakest month in terms of revenue, but PokerStars posted a 37.7% YOY growth  PokerStars may soon have to fend off against more brands joining the Keystone State   PokerStars continues to beat year-over-year results as […]

PokerStars Winter Series PA to Kick Off on January 21

Pennsylvania welcomes PokerStars PA Winter Series on January 21 through January 31 The event will feature $1 million in guaranteed prize money and 45 events in total and a $300,000 Main Event PokerStars will run a similar event in New Jersey  with a guaranteed prize pool worth $500,000 in the Garden State PokerStars is kicking […]

PokerStars Gets Blowout Series Underway, Pennsyl-MANIA Next

Pennsylvania will see two more events by PokerStars before the year is out, with the Blowout Series getting underway today and Pennsyl-MANIA on December 27 $500,000 in guaranteed events are available for both events marking the end of the year PokerStars is still hesitant to link up liquidity across state lines, expecting a final ruling […]