PokerStars parent company Amaya recently filed a notice of appeal in its case against the state of Kentucky. Amaya has vowed to “continue to vigorously challenge” the court decision.
Last November, a judgment of $290 million was issued but both Amaya and Kentucky appealed the decision. In December, Kentucky Circuit Court Judge Thomas raised the amount of the judgment against Amaya to $870 million.
As a penalty, Kentucky had sought to have the damages tripled, which state law allows. Amaya argued that it only received $18 million in revenue from poker players in the state over the time period.
Amaya asked the court to delay payment on the $870 million judgment, for which Amaya was required to post a $100 million supersedeas bond while the appeal is being pursued. In addition , Amaya was required to deliver $35 million in cash as collateral and letters of credit totaling another $30 million.
Amaya also is in a $300 million dispute with Rational Group, the previous owners of PokerStars. Amaya wants Rational Group to pay its share of damages in its case against Kentucky. The agreement between Amaya and Rational Group called for an escrow fund to be established to cover expenses for outstanding legal issues dating back to when the previous owners operated the company. However, last month Amaya received notice from the company’s previous owners that they are disputing Amaya’s claims to collect those funds.
In January, Amaya reached a $6.4 million settlement with Italian tax authorities for discrepancies—some dating back to 2009—revealed during an audit of PokerStars subsidiary Halfords Media Italy S.r.l. In a press release at the time of the settlement, Amaya announced that the “entire settlement amount and related expenses” were paid out of the escrow account established at the time Amaya acquired PokerStars.
