The Kentucky Supreme Court on Thursday reinstated a fine of more than $ 1 billion against online gambling site PokerStars. The state originally filed a lawsuit against PokerStars, claiming it had raised $ 290,230,077 over a five-year period from about 34,000 Kentucky players. The state requested triple the damages plus interest from the site, which was administered offshore by a criminal syndicate, according to the ruling.
The lawsuit had its first ruling in 2015 through the Franklin Court
Franklin Circuit Court Judge Thomas Wingate ordered the PokerStars operator to pay $ 290 million, who later tripled this sum following a request from the state. This was aimed at stopping unregulated taxes and illegal gambling abroad from the website.
Between 2007 and 2011, PokerStars was the largest overseas illegal gambling operator, raising nearly $ 300 million in cash from Kentucky residents who played on its websites. So the state decided to recover the $ 300 million.
At the time of the lawsuit, poker was not legally allowed in Kentucky, so the state had to intervene. So in 2011, the titan PokerStars was expelled from the entire United States territory, due to its illegal operations in the country and from there the lawsuit began.
A legal dispute of more than nine years
Initially, the Court of Appeals reversed the circuit ruling, stating that the state had no standing to sue the site. The state appealed that decision to the Superior State Court and in its ruling, the Supreme Court agreed with the state, declaring that it has the right to initiate the action as a "person."
In a 4-3 decision, he reinstated the original judgment, and the damages owed by PokerStars increased to $ 1.3 billion with accrued financial interest.
This process does not end here for now
Kentucky will now attempt to collect the money once the court order is finalized, which would give it some much-needed revenue in these times of the global COVID-19 pandemic. However, Flutter Group, owner of PokerStars and its parent company, The Stars Group, plans to fight the ruling.
Global gaming giant Flutter Entertainment plc, owners of The Stars Group, has said they are totally shocked and will review their position after the Kentucky Supreme Court overturned a Court of Appeals decision that ruled two years ago in favor of the operator.
Flutter indicated that it will look for ways to reverse or reduce the fine. But if the ruling stands, and since the Supreme Court is the "last resort and final interpreter" of Kentucky law, there are few or no options left, then the company will have to pay the state $ 870 million plus compound interest. .
On the other hand, Governor Beshear said in a statement that this will never be enough to compensate for the damage to Kentucky families and the state.
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