Flutter Entertainment and the state of Kentucky reach $300m settlement
Agreement is significantly lower than the $1.3bn Flutter was ordered to pay last December.
A settlement has been reached in the long running legal dispute between the FanDuel owner, Flutter Entertainment, and the state of Kentucky.
Lasting for over 10 years, legal proceedings began when the state of Kentucky accused Flutter’s PokerStars of allowing its users to gamble online between 2007 and 2011. The company made $18m during this period.
The resolution to the dispute comes as Flutter has agreed to pay a settlement of £200m as well as a further $100m already forfeited as a bond. This payment will see the Kentucky state government end its pursuit of the gaming operator. However, the agreed $300m is far lower than the $1.3bn originally requested in December by the Kentucky Supreme Court.
Speaking on the legal dispute, Flutter Entertainment said in a statement: “The group strongly believes this agreement is in the best interests of Flutter shareholders. The group now considers the matter closed.”
During the time frame in which the offences occurred Flutter did not own PokerStars, rather, it was part of Stars Group. However, the organization was acquired by Flutter for $6bn in 2019. Flutter operates a number of high profile sports betting and gaming brands including Betfair, FanDuel, Fox Bet, Sportsbet and Paddy Power.
Analysts at Davy said on the matter: “We view this as towards the lower (more favorable) end of potential outcomes. Importantly, it also removes a key stock headwind of recent months.”
Recently, Flutter introduced a £500 betting limit for customers under the age of 25 across its British and Irish operations. The initiative is aimed to encourage sensible gaming among younger players and will launch in late 2021.
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