Flutter denied $1.3bn Kentucky court case rehearing
FTSE 100 operator hit with setback after court quashes petition in historic damages case relating to PokerStars
A Flutter Entertainment petition to hold a rehearing of its $1.3bn (£960m) historic damages case has been denied by the Kentucky Supreme Court.
The denial could now see the firm held liable for the whole sum, which relates to the reinstatement of a prior 2015 ruling relating to the The Stars Group (TSG) business.
In a hearing at the Supreme Court in December, judges voted to bring back the prior judgment made by Kentucky’s Franklin Circuit Court in 2015 against TSG over historic violations of the Unlawful Internet Gambling Enforcement Act (UIEGA) between 2007 and 2011.
Officials in Kentucky originally sued TSG brand PokerStars in 2010 under the auspices of the state’s Loss Recovery Act (LRA), which allows losing gamblers to reclaim losses by direct legal action against an operator.
If the affected gambler fails to bring legal action against the operator within a six-month period, a third party, which in this case is the State of Kentucky, can file a civil lawsuit which allows for the initial damage claim to be trebled.
At the time of the reinstatement, Flutter said it would appeal against the decision.
As the plaintiff in the case, Flutter could request a rehearing of the case, under which the judgment is re-examined by the original presiding court. In a rehearing, the court can ask for new testimony and hear opposing arguments again before issuing a new decision if applicable.
In the case of Kentucky law, a rehearing will only be granted when a petitioner can show that “the court has overlooked a material fact in the record, or a controlling statute or decision, or has misconceived the issues presented on the appeal or the law applicable thereto.”
Flutter said in a statement: “Flutter is disappointed by the denial of its rehearing petition and continues to strongly dispute the basis of this judgment.
“Together with its legal advisors, Flutter will continue to consider its position in relation to the judgment, including potentially appealing the ruling of the case to the US Supreme Court along with other legal avenues which it may pursue thereafter.
“Flutter remains confident that any amount ultimately paid to resolve this matter will be a limited portion of the reinstated judgment. Further announcements will be made in due course as and when appropriate,” the firm added.
Kentucky officials have previously said they would look to take aggressive steps to reclaim the damages from Flutter.