bwin.party has paid US$15m to finally settle claims by the US state of Kentucky over gambling losses incurred by its residents on PartyGaming sites prior to the operator’s exit from the US market in late 2006.
Spokesman John Shepherd said in a press statement that the agreement constituted no admission of wrongdoing by or individuals acting on behalf of the company, and resolved “the only remaining litigation involving the Company that stems from our pre-UIGEA US activities.”
PartyGaming, which merged with bwin to form bwin.party in 2011, entered a US$105m non-prosecution deal with federal prosecutors in April 2009 to settle its Stateside activities prior to passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October 2006.
Shepherd also emphasised the agreement also made it clear bwin.party, formed of the merger of PartyGaming with bwin in 2011, would not be prevented from offering online gambling in Kentucky should the activity become lawful and licensed there in the future.
The settlement comes ahead of bwin.party applying for licensing in New Jersey, as the technology partner to bricks ‘n’ mortar casino owner Boyd Gaming, part owner of the largest resort in Atlantic City, the Borgota.
The civil claim on behalf of the Commonweath of Kentucky against PartyGaming was filed in November 2010, an amendment to an April 2010 complaint against Full Tilt owner Pocket Kings that was later widened to include Microgaming that October.
PartyGaming’s counsel had filed a motion to dismiss all of Kentucky’s claims, memorably asserting that Kentucky’s had “failed to identify a single purported ‘loser,’ a single quantifiable loss, and a single date on which an alleged loss has occurred.”
The civil claim was not related to Kentucky’s 2008 seizure and forfeiture action in relation to 141 online gambling domain names, which did not include any PartyGaming-owned sites. This lawsuit ultimately forced casino supplier Microgaming’s exit from the market.
Kentucky Governor Steve Beshear said he was pleased the state had recovered the losses “on behalf of Kentuckians”. He however made no mention of any plans by the Bluegrass State to return these monies obtained from bwin.party to the state residents it claimed had been affected.
Secretary of Justice and Public Safety J Michael Brown also confirmed the Commonwealth would continue to pursue pending lawsuits against companies including PokerStars and Full Tilt.
Article written by Katy Stirland
