17th Dec 2020 18:25
(Alliance News) - Flutter Entertainment PLC on Thursday said the Kentucky Supreme Court in the US has reinstated an award of damages against certain subsidiaries of the gaming firm's Stars Group business, made in 2015.
The Kentucky Court of Appeals in 2018 had voted in favour of Stars, discarding the massive penalty that had been imposed by a trial court judge in December 2015 for alleged losses incurred by Kentucky residents who played real-money poker on PokerStars between 2006 and 2011.
Flutter, which merged with Canada's Stars Group earlier this year, said the 2015 ruling had subsequently been vacated in its entirety by the Kentucky Court of Appeals in 2018. The outcome of Thursday's Kentucky Supreme Court ruling, it noted, is that the USD870 million judgement against Stars has been reinstated, with compounding interest of 12% per year.
Flutter said gross gaming revenues that Stars generated in Kentucky during the period were around USD18 million and having taken legal advice, Flutter said it is confident that any amount it ultimately becomes liable to pay will be a limited proportion of the reinstated judgement.
"Flutter is wholly surprised by today's ruling and strongly disputes the basis of this judgement which, it believes, runs contrary to the modern US legal precedent. This litigation had sought recovery of alleged losses by Kentucky residents during a period between 2006 and 2011 relying on a centuries-old statute. Together with its legal advisors Flutter is currently reviewing its position. No liability was previously recognised by either TSG or Flutter in relation to this. Flutter's balance sheet remains robust," the company formerly known as Paddy Power Betfair said.
The stock closed up 0.7% at 15,490.00 pence Thursday.
By Arvind Bhunjun; [email protected]
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