PokerStars owner Flutter Entertainment has agreed to pay a $200m settlement to the Commonwealth of Kentucky, bringing an end to the long-running legal dispute between the two.
Flutter will also pay an additional $100m previously forfeited to the Commonwealth as part of the supersedeas bond in the case.
The dispute stems back to 2015 when PokerStars was ordered to pay $290m by Franklin Circuit Court Judge Thomas Wingate, after allegations that it provided unlawful gambling services to Kentucky-based players between October 2006 and April 2011.
The fee was then increased to $870m when the Kentucky Supreme Court reinstated the judgement in 2018, with the increase owed to the application of a 12% per annum to the sum owed. Flutter claimed PokerStars made just $18m from Kentucky customers during the period in question.
The fine was quashed by the Court of Appeals in 2019 – a decision which was appealed by the Commonwealth.
The dispute was eventually raised to the US Supreme Court earlier this month, before both parties agreed to an out-of-court settlement.
A statement from Flutter said: “The group strongly believes that this agreement is in the best interests of Flutter shareholders. The group now considers the matter closed.”
The Stars Group was acquired by Flutter Entertainment, the parent company of Paddy Power Betfair and FanDuel, in May 2020.