Flutter Entertainment has stated that it considers its legal issue with the Commonwealth of Kentucky to be resolved, having paid the state $300 million.
In addition to a prior payment of $100 million in respect to a superseding bond in the case, the betting and gaming company has paid $200 million to Kentucky as part of its settlement with the Commonwealth.
The legal dispute stemmed from The Stars Group’s operations between 2006 and 2011, which authorities claim were illegal under the rules of the Unlawful Internet Gambling Enforcement Act, which Flutter purchased last year.
A statement from the group said: “The Group strongly believes that this agreement is in the best interests of Flutter shareholders. The Group now considers the matter closed.”
Kentucky was eager to recoup purported losses incurred by residents of the state while playing real-money poker on The Stars Group’s PokerStars platform between 2006 and 2011, citing the 18th century’Loss Recovery Act’ as support.
In December 2015, a Kentucky judge set an award of $290 million, which was later tripled to $870 million deducting interest and costs, with the operator’s gross gaming revenues from 2006 to 2011 totaling roughly $18 million.
PokerStars has claimed that online poker falls under the UIGEA’s “grey area” regulations, while Flutter has filed a number of challenges against fines imposed on its new subsidiary prior to the takeover.
Although the initial $870 million fine was rejected, it was eventually reinstated after a Kentucky court decided four to three in favour — bringing the damages claim to $1.3 billion with an annual compounding interest rate of 12percent.
Flutter’s appeal to the Kentucky Supreme Court was denied in March, prompting the firm to file a petition with the United States Supreme Court earlier this month.