Canadian online gambling giant Amaya Inc. provided more information regarding its ongoing dispute with the state of Kentucky. The company said that it submitted on Monday, through subsidiaries, a notice to appeal the trial court order announced by a Kentucky court in December 2015 for damages against the said subsidiaries. In addition, the company and its subsidiaries posted a defendant’s appeal bond of $100 million to stay execution of the order during the appeals process.
Last December, a Kentucky court ordered Amaya to pay penalties of $870 million so that to cover losses by state residents who played on PokerStars in the period between 2006 and 2011. The Canadian giant acquired PokerStars and Full Tilt Poker back in August 2014 through an unprecedented acquisition of their parent company – Rational Group, for the amount of $4.9 billion.
Posting the supersedeas bond, Amaya was required to pay cash collateral of $35 million and to deliver letters of credit of $30 million. The online gambling company said that it would keep on challenging the Kentucky court order.
Late last month, following the procedures noted in the merger deal that governed the takeover of the PokerStars brand, an Amaya subsidiary filed a notice of claim to a representative for the sellers and an escrow agent to seek indemnification of any losses and potential additional losses related to breaches of the merger agreement. In addition, it requested the escrow agent to keep the remainder of the escrow fund, which was established when the merger agreement was set forth and amounted to an approximate of $300 million.
Amaya said that it has later on received a notice from a representative for the sellers who disputed the claims noted in the company’s notice of claim. The disputed claims and the future release of the escrow finances are to be resolved as stated in both the merger and the escrow agreements.
Amaya pointed out in a statement from Monday that its appeal may not be successful and the notice of claim may not result in the remission of any money from the escrow fund to the Canadian company. It also said that its potential losses may not eventually be reimbursed by sellers or otherwise.
