Amaya files notice of appeal against Kentucky court order

Amaya files notice of appeal against Kentucky court order

Canadian gaming giant Amaya has filed a notice of appeal against a Kentucky court order to pay $870 million (€794 million) in damages for subsidiary PokerStars’ allegedly illegal operations in the US state between 2006 and 2011.

Amaya said that it has filed a $100 million supersedeas bond to stay enforcement of the order “during the pendency of the appeals process”.

Amaya added that it will “continue to vigorously challenge the trial court’s order”.

“In late January, pursuant to and in accordance with the procedures set forth in the merger agreement governing the acquisition of the PokerStars business, a subsidiary of Amaya submitted a notice of claim to the sellers’ representative and escrow agent seeking indemnification for losses and potential losses caused by breaches under the merger agreement,” Amaya said.

Amaya added that its subsidiary’s notice of claim requested “among other things, that the escrow agent retain the then-remaining balance of the escrow fund established under the merger agreement in an aggregate amount equal to approximately $300 million”.

Amaya continued: “Amaya has since received a notice from the sellers’ representative initially disputing all claims set forth in Amaya’s notice of claim. The disputed indemnity claims and release of the escrow funds will be resolved in accordance with the provisions of the merger agreement and escrow agreement.”

Franklin Circuit Court Judge Thomas Wingate originally fined the company $290 million in November, but tripled the amount in December following a request from the state.

Amaya, which only bought PokerStars owner Rational Group in 2014, has been told that it will pay 12% interest per year until the debt is paid off.

This is a reprint from igamingbusiness.com. to view the original, click here.

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