Kentucky Settles with bwin.party, Still Pursuing PokerStars and Full Tilt
Key Takeaways
  • Kentucky has settled a 2010 lawsuit with bwin.party for $15 million “to recover online gambling losses by Kentucky residents”
  • The state is still pursuing litigation against PokerStars and Full Tilt.
  • The statute of limitations for operators that continued to serve the US has not expired, leaving the possibility that other states may take similar action against PokerStars and Full Tilt.

The Commonwealth of Kentucky has settled another case, this time with bwin.party for $15 million.

The latest victory for Kentucky comes as a result of civil filings in August 2010 “to recover online gambling losses by Kentucky residents” prior to the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA), according to a press release issued by the state.

bwin.party pulled out of the US market after President George W. Bush signed the UIGEA into law in October 2006. The complaint was not related to the 2008 lawsuit by Kentucky when it attempted to seize 141 internet domain names related to online gambling.

In a statement sent to pokerfuse, Kentucky Governor Steve Beshear said: “I’m pleased that we were able to recover losses on behalf of Kentuckians. bwin.party is making every effort to comply with the laws of the United States and demonstrate that they want to be known for their integrity and honesty in this industry.”

“The agreement resolves the only remaining litigation involving the Company that stems from our pre-UIGEA U.S. activities,” John Shepherd, Director of Corporate Communications, told pokerfuse.

“The agreement also makes clear that it does not prevent or limit bwin.party from offering internet gaming to Kentucky residents in the future, if lawful and licensed there.”

As part of the agreement, bwin.party has admitted no wrongdoing, according to Shepherd.

Last week Kentucky reached a settlement with the federal government that netted it $6 million in exchange for the release of claims against Absolute Poker’s and UltimateBet’s domains.

The Kentucky Secretary of the Justice & Public Safety Cabinet, J. Michael Brown, reiterated, “Kentucky will continue to pursue action against internet gaming companies identified in its pending lawsuits, which include PokerStars and Full Tilt Poker.”

The filing against bwin.party by Kentucky came just months before the five-year statute of limitations expired, a clock that started ticking when the online gambling provider vacated its operation in the US. For operators like PokerStars and Full Tilt Poker that offered wagers within the US post-UIGEA, that clock is still ticking—and it is yet to be seen if other states will follow suit and take similar action.