MONTREAL, Dec. 24, 2015 /CNW/ - Amaya Inc.
(NASDAQ:AYA; TSX: AYA) today announced it will appeal a judgment
issued yesterday by a state judge in the Commonwealth of
Kentucky and will avail itself of
any and all remedies available to it. The litigation was
filed by the Commonwealth of Kentucky in 2010 and sought recovery of
alleged losses by Kentucky
residents who played real-money poker on PokerStars' website during
a period between 2006 and 2011. In the decision, the judge
imposed an approximately US$290
million award, which he trebled to approximately
US$870 million excluding interest and
applicable costs, in favor of the Commonwealth. The latest ruling
is in stark contrast to the same trial court's decision just last
month when it determined that damages should be based on the net
losses of players. Yesterday's order applies a methodology that is
not grounded in applicable law as it calculates damages based on
gross losses of players without any reduction for winnings, bonuses
or free play.
"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," said Marlon
Goldstein, Executive Vice President, Corporate Development
and General Counsel of Amaya. "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."
To bring the action, Kentucky
relied on a centuries old statute that was intended to allow
individuals who incurred gaming losses to sue their opponents; it
was never intended to authorize the Commonwealth to sue and collect
such losses for its own benefit. In fact, no other state in
the union has brought an action under this type of antiquated
statute to recover alleged gaming losses in the name of a state.
Amaya intends to post a bond to stay the enforcement of the
order and to appeal in early January. The appeal will, among
other arguments, raise factual and legal errors (including
violations of the state and federal constitutions) that include,
but are not limited to, the trial court's ruling permitting the
Commonwealth to assert standing, its failure to find facts that
give rise to the violation of the statute, its clearly erroneous
decisions of law, and its failure to properly apply the law to the
facts. Amaya will also vigorously challenge the trial court's
calculation of alleged gaming losses, which was based on an
improper reading of a 100-year-old leading appellate decision.
Regardless of the dollar amount, to the extent the PokerStars
entities may be ultimately obligated to pay any amounts following
exhaustion of all appeals and other legal remedies, Amaya intends
to seek recovery against the former owners of the PokerStars
business.
Amaya has been a leader in promoting the regulation of online
gaming in the United States.
Earlier this year, following an extensive review, Amaya received
approval to begin operating its PokerStars brand in the regulated
market of New Jersey, which it
plans to launch in the first half of 2016. PokerStars is the
world's most licensed and heavily regulated online gaming
brand.
About Amaya
Amaya is a leading provider of technology-based solutions,
products and services in the global gaming and interactive
entertainment industries. Amaya owns gaming and related consumer
businesses and brands including PokerStars, Full Tilt, BetStars,
StarsDraft, the European Poker Tour, PokerStars Caribbean
Adventure, Latin American Poker Tour and the Asia Pacific Poker
Tour. These brands have more than 97 million cumulative registered
customers globally and collectively form the largest poker business
in the world, comprising online poker games and tournaments, live
poker competitions, branded poker rooms in popular casinos in major
cities around the world, and poker programming created for
television and online audiences. Amaya, through certain of these
brands, also offers non-poker gaming products, including casino,
sportsbook and daily fantasy sports. Amaya has various gaming and
gaming-related licenses or approvals throughout the world,
including from the United Kingdom,
Italy, France, Spain, Estonia, Belgium, Denmark, Bulgaria, Greece, Ireland, Romania, the Isle of
Man, Malta, the State of
Schleswig- Holstein in
Germany, the Province of
Quebec in Canada, and the State of New Jersey in the United States.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and
applicable securities laws, including, without limitation, certain
expectations and projections related to legal proceedings.
Forward-looking statements can, but may not always, be identified
by the use of words such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"would", "should", "believe", "objective", "ongoing", "assumes",
"goal" and similar references to future periods or the negatives of
these words and expressions and by the fact that these statements
do not relate strictly to historical or current matters. These
forward-looking statements are based on management's current
expectations and are subject to a number of risks, uncertainties,
and assumptions, including market and economic conditions, future
plans and strategies, projections, anticipated events and trends
and regulatory changes that affect us, our customers and our
industries. Although Amaya and management believe that the
expectations reflected in such forward-looking statements are
reasonable and based on reasonable assumptions and estimates, there
can be no assurance that these assumptions or estimates are
accurate or that any of these expectations will prove accurate.
Forward-looking statements are inherently subject to significant
business, economic and competitive risks, uncertainties and
contingencies that could cause actual events to differ materially
from those expressed or implied in such statements. Such
risks and uncertainties include those identified under the heading
"Risk Factors and Uncertainties" in Amaya's Annual Information Form
for the year ended December 31, 2014
and in its Management's Discussion and Analysis for the period
ended September 30, 2015, each
available on SEDAR at www.sedar.com, EDGAR
at www.sec.gov and Amaya's website at www.amaya.com,
and in other filings that Amaya has made and may make with
applicable securities authorities in the future. Investors are
cautioned not to put undue reliance on forward-looking statements.
Any forward-looking statement speaks only as of the date hereof,
and Amaya undertakes no obligation to correct or update any
forward-looking statement, whether as a result of new information,
future events or otherwise, except as required by applicable
law.
SOURCE Amaya Inc.