Amaya Online Gambling Battles Another Legal Challenge

Published Sunday, December 27, 2015 -
Amaya Online Gambling Battles Another Legal Challenge

Amaya has been battling the good fight to remain afloat and out of court ever since the 'little company that could' bought Poker Stars and Full Tilt Poker from the Rational Group a short time ago. The Montreal based Canadian firm paid a lot of cash for the biggest poker rooms online only to be saddled with more costs associated with legal issues. First off the bat in December of 2014 the company was investigated by authorities for insider trading slashing  its stock value 18 per cent after Amaya confirmed that Quebec’s securities regulator launched an investigation into trading activity. PokerStars had already agreed in 2012 to pay US$731 million to settle Justice Department charges, without admitting wrongdoing which has paid off somewhat with the acceptence of Poker Stars in the US market recently.
Concidering all the good will and possible pay back, what has dragged Amaya down more than anything has been the legal issues the firm has encountered along its quick rise to the top. A year has passsed since the first hurdle now the company seems to have found yet another front it must battle to make the payroll. Kentucky has dropped another issue on the door step of Amaya Gaming ordering the firm to settle an old score that Rational Group has left in its wake.  
A Kentucky court has issued a US$870-million verdict against the company for losses at its PokerStars online gambling website sending the stock on another slide. The 52-week low was not good news for investors.  Of course Amaya said it will appeal the judgment, which it described as being based on an arcane law dating back more than 200 years and completely disproportionate to the alleged offence. Kentucky filed suit against Amaya to recover alleged losses by state residents who played the real-money options on PokerStars between 2006 the 2011.
Amaya lawyer Marlon Goldstein said, "This is a frivolous and egregious misuse of an antiquated state statute to enrich the contingent-fee plaintiff's attorneys hired by the Commonwealth and not the people of Kentucky," Goldstein added "Given that PokerStars only generated gross revenues of approximately US$18 million from Kentucky customers during the five years at issue, a damages award in excess of US$800 million is notable only for its absurdity."
The damage to the stock value has been done for now its two steps forward for Amaya and one step back.

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