Amaya Will Seek Money From PokerStars' Former Owners If It Is Forced To Pay KentuckyState Wants Site To Give Back Revenue From Kentuckians |
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Amaya Gaming, the owner of PokerStars, will “seek recovery against the former owners of the PokerStars business” if a legal battle in Kentucky doesn’t go its way.
The Canada-based Amaya said it’s still fighting a “frivolous” lawsuit filed by Kentucky five years ago that is seeking to recover what Kentucky residents spent on PokerStars from 2006 to 2011. PokerStars left U.S. cyberspace in April 2011 in an event known as Black Friday and has yet to return, though it did receive a New Jersey I-gaming license this fall.
Amaya bought PokerStars in 2014 for $4.9 billion.
According to Amaya, PokerStars took in roughly $18 million from Kentuckians during the period in question. Amaya said that Kentucky wants as much as $290 million.
A court has already acknowledged that the amount is incorrect, PokerStars said.
“Amaya intends to vigorously dispute any liability that may be ordered at the trial court level, and believes that there are a number of compelling legal arguments reserved for consideration, including, without limitation, the lack of standing to bring this proceeding in the name of the Commonwealth and the Court’s failure to properly apply the law,” the company said in a statement.
It added that it would try to make PokerStars’ former owners pay a final order amount.
“To the extent the PokerStars entities may be ultimately obligated to pay any amounts pursuant to a final adjudication following exhaustion of all appeals and other legal options, Amaya intends to seek recovery against the former owners of the PokerStars business.”
Earlier this month, the Poker Players Alliance said that it filed a motion to get involved with the lawsuit on the side of PokerStars. The PPA called the lawsuit a "cynical big government money grab of private consumer dollars to pay for political excesses.”
The money would not go to former players of the site.
Before getting old to Amaya, PokerStars settled with the federal government without admitting to any wrongdoing, and in the process acquired former rival Full Tilt Poker.
PokerStars had to pay $731 million in the settlement.
PokerStars said this fall that it and Full Tilt have 71 percent of the global online poker market. PokerStars has nearly 100 million registered users.
In 2013, Kentucky was able to get a $15 million settlement with Bwin.Party in a similar suit. A similar action filed against PokerStars in Illinois was dismissed earlier this year.
Kentucky tried in 2008 to seize 141 domain names associated with Internet betting. Court battles ensued, but the seizures never happened.
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