FRANKFORT, KY (WOWK) — Flutter Entertainment, the Parent company of PokerStars, has agreed to pay Kentucky $300 million to settle a lawsuit brought against the internet gambling site in 2011.
Kentucky Governor Andy Beshear says J. Michael Brown, the Secretary of the Justice and Public Safety Cabinet in 2008, brought actions on behalf of Kentucky in Franklin Circuit Court to stop the unregulated, untaxed and illegal offshore gambling operations running in Kentucky.
PokerStars collected almost $300 million in actual cash losses from thousands of Kentuckians who played on PokerStars’ websites from 2007 to 2011.
Under Kentucky law, the state brought an action against PokerStars seeking recovery of the nearly $300 million lost by its citizens and trebled as required by Kentucky law damages.
Last year, the Supreme Court of Kentucky affirmed that judgment, which was rendered in December 2015.
Flutter Entertainment and its subsidiary, PokerStars, are located in the Isle of Man, United Kingdom. PokerStars claimed that the English Protection of Trading Interests Act of 1980 could have prevented the commonwealth from collecting the damages upheld by the Supreme Court of Kentucky.
The $300 million settlement amount is nearly $10 million above the actual damages awarded by the courts, which was $290,230,077.94.
In April 2021, the Franklin Circuit Court ordered a bond of $100 million to be paid. The bond payment was received in May, and an additional $200 million was added to it.
Kentucky law says the proceeds from the settlement will go to the General Fund.
After 10 long years, the commonwealth has not only prevailed, but collected dollars that the General Assembly will be able to direct to critical areas, like education, health care and economic development.Kentucky Governor Andy Beshear (D)