Amaya Gaming Appeals Court Order to Pay $870 Million

Gaming titan, Amaya Incorporated has revealed further details about their ongoing court case with the state of Kentucky. Amaya Inc. said that they have submitted, through their subsidiaries, a notice to appeal the trial court order that was announced by Kentucky court in December of 2015, on Monday. The company and its subsidiaries also posted a defendant’s appeal bond of $100 million to stay execution of the order during the appeals process.

About Amaya

Amaya Incorporated also known as Amaya Gaming, is an online gambling company based in Montreal, Quebec. Amaya acquired the parent company of PokerStars and Full Tilt Poker, Rational Group, in August 2014 to become the largest publicly listed online gambling company in the world. The company produces gaming products and services that are operational in some of the largest gaming operators and casinos in the world.

The Case

Last December, a Kentucky court ordered the gaming giant to pay penalties of $870 million, to residents of the state who suffered losses by playing on the PokerStars site between 2006 and 2011. Amaya acquired the site when it bought over the parent company, Rational Group, in 2014 for $4.9 billion

Amaya stated that they would keep challenging the court order issued by the state of Kentucky. They were required to a pay cash collateral of $35 million and to deliver letters of credit in the amount of $30 million when posting the $100 million spersedeas bond.

In late January 2016, following the merger deal procedures, outlined during the takeover of the PokerStars brand, one of Amaya’s subsidiary filed a notice of claim to a representative for the seller and an escrow agent, to seek indemnification of any losses and potential additional losses related to breaches of the merger.  Furthermore, they have also requested the escrow agent to hold on to the remainder of the escrow fund of $300 million.

The Refusal

Amaya later received a notice from the seller’s representative who dispute the claim. Both the dispute claims and the release of the escrow funds will be resolved in accordance to the merger and the escrow agreements. Amaya Incorporated mentioned in a statement following Monday’s appeal that the appeal may be unsuccessful and the notice of claim may not result in reclamation of any money from the escrow fund. Amaya is also not confident about their potential losses eventually being reimbursed by the sellers or any other third party.

We will be happy to hear your thoughts

Leave a reply