Operator News
US – Flutter to appeal $870m Kentucky Court ruling against TSG
By Lewis - 18 December 2020
The Kentucky Supreme Court has ruled on legal proceedings originally brought by the Commonwealth of Kentucky in 2010 against certain subsidiaries of The Stars Group (TSG) prior to its combination with the Flutter Group.
The Kentucky Supreme Court judgement has reinstated an award of damages against TSG made in 2015 by a Kentucky trial court judge. That 2015 ruling had subsequently been vacated in its entirety by the Kentucky Court of Appeals in 2018. The outcome of the Kentucky Supreme Court ruling is that the $870 million judgement against TSG has been reinstated with compounding interest of 12 per cent per annum.
The gross gaming revenues TSG generated in Kentucky during the relevant period were approximately $18m. Having taken legal advice, Flutter has said it is confident that any amount it ultimately becomes liable to pay will be a limited proportion of the reinstated judgement.
Flutter added that it strongly disputes the basis of the judgement which, it believes, runs contrary to the modern US legal precedent. The litigation had sought recovery of alleged losses by Kentucky residents during a period between 2006 and 2011 relying on a centuries-old statute.
Together with its legal advisors Flutter is currently reviewing its position. No liability was previously recognised by either TSG or Flutter in relation to this and Flutter made noted its balance sheet remains robust.
