22nd Sep 2021 08:29
(Alliance News) - Flutter Entertainment PLC on Wednesday said its legal battle with the Commonwealth of Kentucky has been settled in full.
The settlement requires the Dublin-based betting company to pay a further USD200 million to Kentucky. It has already paid USD100 million as part of an appeal bond.
As a result, Kentucky will cease all further legal action in respect of the case.
Legal action was originally brought by Kentucky in 2010 against certain subsidiaries of The Stars Group before Flutter's takeover. Stars merged with Flutter in May last year.
The proceedings related to alleged losses incurred by Kentucky residents who played real-money poker on the PokerStars platform between 2006 and 2011.
Then last December, Flutter revealed the Kentucky Supreme Court reinstated a ruling which had forced Stars to pay damages. The 2015 ruling had previously been vacated in entirety by the Kentucky Court of Appeals in 2018, meaning Stars was spared of paying damages.
However, December's ruling against Stars meant it was slapped with a USD870 million penalty. It said at the time it was "wholly surprised" and sought to dispute.
The Paddy Power owner on Wednesday said it "strongly believes" that the USD200 million settlement is in the best interests of its shareholders.
Additionally on Wednesday, Flutter is hosting a virtual investor event to showcase its Australian division, Sportsbet.
"We believe that the Sportsbet case study highlights how a market leader in our industry, with a clear strategy that puts product innovation and customer entertainment at the heart of what it does, can consistently deliver market share gains," said Chief Executive Peter Jackson.
"Sportsbet's success also underlines how being the scale operator in a local market with access to Flutter Group capabilities can enable it to respond well to the inevitable changes that occur across regulatory and tax landscapes over time. This results in growing market share and profitability as competitors find it more difficult to adjust to such changes."
Shares were up 5.5% at 16,105.84 pence in London on Wednesday morning.
By Josie O'Brien; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Flutter Entertainment