Amaya to appeal âabsurdâ $870m Kentucky fine
Kentucky court yesterday hit PokerStars with a financial penalty for taking post-UIGEA bets
Amaya this morning described a Kentucky courtâs decision to hand down a fine of $870m to its PokerStars subsidiary as an âabsurdityâ and said it plans to appeal yesterdayâs âfrivolousâ ruling. [private]
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 $290m award in favor of the state but then trebled that amount to $870m, in stark contrast to the same courtâs ruling last month that determined damages should be based on the net loss of players.
PokerStars claims to have generated gross revenues of around $18m from players in the state during the period.
In a statement Amaya, which acquired PokerStars in August 2014, said the ruling applied a methodology that was not grounded in applicable law and calculated damages based on gross losses of players without deductions for winnings, bonuses or free play.
âThis is a frivolous and egregious misuse of an antiquated state statue to enrich the contingent-free plaintiffâs attorneys hired by the Commonwealth and not the people of Kentucky,â Marlon Goldstein, Amaya general counsel, said.
âGiven that PokerStars only generated revenues of $18m from Kentucky customers during the five years at issue, a damages award in excess of $800m is notable only by its absurdity,â he added.
Amaya said it intends to post a bond to stay the enforcement of the order and appeal the ruling in January where it will raise âfactual and legal errorsâ including the courtâs failure to properly apply the law to facts.
The firm said the ruling has been based on a âcenturies old statuteâ that was intended to allow individuals who incurred gambling losses to sure their opponents.
âIt was never intended to authorize the Commonwealth to sue and collect such losses for its own benefit,â the statement said.
If Amaya is unsuccessful in its defence of the case and is obligated to pay any amounts to the state, the firm said it intends to seek recovery against the former owners of the PokerStars business.
Kentucky has filed suits against more than 140 online poker operators including bwin.party, which reached a $15m settlement with the state in July 2013.