Amaya appeals against $870m Kentucky fine
Operator files a notice of appeal and posted a $100m bond to stop the order being enforced
Amaya has taken the first step in its bid to overturn the âabsurdâ $870m fine imposed by a Kentucky court, filing a notice of appeal and posting a $100m bond to stop the order being enforced while the process rumbles on. [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 favour of the state but then trebled that amount to $870m, in stark contrast to the same courtâs earlier ruling 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.
Amaya said the $100m bond included $35m in cash and credit letters amounting to $30m, and that it planned to recoup any losses or potential losses from PokerStarsâ former owners. In January, the firm requested access to a $300m escrow fund established as part of its deal to acquire the Rational Group back in 2014.
However, Amaya said Starsâ previous owners have disputed its claims, but expects them and the release of the escrow funds to be âresolved in accordance with the provisions of the merger agreement and escrow agreementâ.
The operator added there could be no assurance its appeal will be successful or that its notice of claim will result in any amounts in the escrow fund being remitted, or that any of its potential losses will be reimbursed by Starsâ former owners.
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.