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The Stars Group Announces Complete Reversal of $870 Million Kentucky Judgment

Zoltan Tundik

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Stars Group Announces Job Losses at Isle of Man Office
The Stars Group Logo
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The Stars Group Inc. (Nasdaq: TSG; TSX: TSGI) today announced that the Kentucky Court of Appeals has ruled in its favor and reversed in its entirety the $870 million judgment issued against it by a trial court judge in December 2015. The Court of Appeals stated “[a]llowing a complaint, like the one put forth by the Commonwealth, to move forward would lead to an absurd, unjust result.”

“We applaud the decision of the highly-respected three-judge panel of the Kentucky Court of Appeals,” stated Marlon Goldstein, Executive Vice President & Chief Legal Officer of The Stars Group. “The merits of the case prevailed and we look forward to putting this matter behind us as we sharpen our focus on executing on our growth strategy going forward.”

The litigation that is subject to the appeal was initially filed by the Commonwealth of Kentucky in 2010, approximately four years prior to The Stars Group’s acquisition of the PokerStars business, and sought recovery of alleged losses by Kentucky residents who played real-money poker on PokerStars’ website during a period between 2006 and 2011. To bring the action, Kentucky relied on a centuries old statute that was intended to allow individuals who incurred gaming losses to bring an action against their winning opponents, but was never intended to authorize the Commonwealth to sue and collect such losses from the operator of the games for the Commonwealth’s own benefit.

As a result of the ruling, The Stars Group intends to petition for the release of the $100 millionsupersedeas bond posted by it to stay enforcement of the trial court’s order during the pendency of the appeals process, which includes$5 million in cash collateral and $65 million in letters of credit securing the same.

As previously disclosed, approximately $300 million continues to be held in an indemnity escrow fund established under the merger agreement governing The Stars Group’s acquisition of the PokerStars business. The Stars Group previously filed an indemnification claim relating to the Kentucky litigation, which is currently pending against the sellers of the PokerStars business, for all losses, costs and expenses related to the litigation. This claim and the release of the outstanding escrow funds will be resolved in accordance with the provisions of the merger and escrow agreements related to the acquisition. There can be no assurance that such claim will result in any amounts in the escrow fund or otherwise being remitted to The Stars Group or that any of The Stars Group’s estimates of potential losses will reimbursed by the sellers or otherwise.

The Stars Group expects the Commonwealth to either petition the Court of Appeals for a rehearing or seek discretionary review of the Court of Appeals decision by the Kentucky Supreme Court and intends to vigorously dispute any and all liability in the event the Kentucky Supreme Court grants review and hears the appeal.

About The Stars Group

The Stars Group is a provider of technology-based product offerings in the global gaming and interactive entertainment industries. Its brands have millions of registered customers globally and collectively are leaders in online and mobile betting, poker, casino and other gaming-related offerings.  The Stars Group owns or licenses gaming and related consumer businesses and brands, including PokerStars, PokerStars Casino, BetStars, Full Tilt, BetEasy, Sky Bet, Sky VegasSky Casino, Sky Bingo, and Sky Poker, as well as live poker tour and event brands, including the PokerStars Players No Limit Hold’em Championship, European Poker Tour, PokerStars Caribbean Adventure, Latin American Poker Tour, Asia Pacific Poker Tour, PokerStars Festival and PokerStars MEGASTACK. The Stars Group is one of the world’s most licensed online gaming operators with its subsidiaries collectively holding licenses or approvals in 21 jurisdictions throughout the world, including in EuropeAustralia, and the Americas. The Stars Group’s vision is to become the world’s favorite iGaming destination and its mission is to provide its customers with winning moments.

After starting out as an affiliate in 2009 and developing some recognized review portals, I have moved deeper into journalism and media. My experience has lead me to move into the B2B sector and write about compliance updates and report around the happenings of the online and land based gaming sector.

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Gambling in the USA

Caesars and Eldorado Set Date for Shareholders Meetings

Niji Narayan

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Caesars and Eldorado Set Date for Shareholders Meetings
Photo Source: bloomberg.com
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Caesars Entertainment and Eldorado Resorts have announced that they will hold separate shareholder meetings on November 15 to vote on their proposed US$17.3 billion merger.

The meetings will see Caesars shareholders cast their vote at Caesars Palace in Las Vegas from 9 am Pacific Time while Eldorado shareholders will converge on Eldorado Resort in Reno. At stake is one of the biggest corporate gaming industry deals in history, with Eldorado looking to acquire the entire outstanding share capital in Caesars by way of a US$7.2 billion cash payment, 77 million Eldorado common shares and the assumption of Caesars’ outstanding net debt.

If approved, Caesars will merge with Eldorado subsidiary Colt Merger Sub Inc and become a new wholly-owned Eldorado subsidiary existing under the Caesars name.

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Gambling in the USA

Continent 8 Technologies and Iforium strengthen partnership to pursue US online gaming opportunities

George Miller

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Continent 8 Technologies and Iforium strengthen partnership to pursue US online gaming opportunities
Nick Nally, Chief Development Officer of Continent 8 (right) with Andrew Cairns, COO, Iforium (left) on Douglas Head, Isle of Man.
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Continent 8 Technologies and Iforium have announced the expansion of their partnership, to pursue exciting opportunities in the emerging US online gaming market.

Iforium is the first tenant at Continent 8’s latest data centre at the Atlantic City Convention Center which opened in June this year in partnership with the CRDA (Casino Reinvestment Development Authority). Designed to Tier 3 standards, it is the first ever purpose built data centre in Atlantic City and is already playing a significant role in growing New Jersey’s reputation as the largest hub for online gaming, sports betting, and eSports in the United States.

Michael Tobin, Co-Founder and CEO of Continent 8 Technologies, said: “We’re delighted to announce Iforium as the first tenant at our Atlantic City data centre. Iforium are a long-standing Continent 8 client, but today’s announcement represents a significant strengthening of our business relationship, and a major step forward in terms of Continent 8’s commitment to the emerging US market.”

Over the past 12 months, Continent 8’s US multi-state capacities increased to include Indiana, Mississippi, Nevada, New Jersey, Pennsylvania, and West Virginia, with upcoming locations in Florida, Illinois, Iowa, New Hampshire, New York, Ohio, Oregon, and Tennessee.

Phil Parry, CEO of Iforium, commented: “Our presence in the US online gaming market is growing rapidly and Continent 8 are providing the gateway with their state-of-the-art data centre in Atlantic City. It’s an exciting time for Iforium. We received our transactional waiver from the New Jersey Division of Gaming Enforcement (DGE) in July, and are now live with our first operator in the state of New Jersey.”

The granting of the transactional waiver was a landmark decision for the company and the US sector because it means that the DGE will allow Iforium to provide licensed operators with its Gameflex casino platform that now hosts more than 9,000 games from over 100 third-party suppliers.

Continent 8’s advanced data centres and high-quality networks support critical online operations in both private and public-sector organisations in over 40 locations across Europe, Asia, and the Americas. The company will be welcoming more clients to its Atlantic City data centre in the coming months. Visit https://www.atlanticcity-datacenter.com/ for more information.

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Gambling in the USA

BMM Testlabs – The World’s Best Regulatory Partner Since 1981

George Miller

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BMM Testlabs - The World's Best Regulatory Partner Since 1981
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BMM Testlabs, the world’s original gaming test lab and product compliance consultancy is pleased to offer complimentary, tailored training solutions and tools to gaming regulators across the globe.

Travis Foley, BMM’s Chief Operations Officer commented, “Through our BMM Academy, training and technology services are available year-round and are customized to meet the unique needs of each regulatory body, without a need for gaming lab exclusivity. We offer decades of expertise and industry experience to provide 24/7 support to the jurisdictions we serve. Our mission is to go above and beyond what is required of us, do the right thing and lead the way in responsible and ethical business practices.”

Martin Storm, BMM Testlabs’ President and CEO added, “Importantly, BMM’s complimentary services do not require a pledge of exclusivity from commercial and tribal gaming regulators. Our only desire is to ensure our regulatory partners are up to date on all the latest gaming technology and get the help they need. We encourage all regulatory bodies to stop by BMM Testlabs booth at G2E to learn how we can align our exceptional training solutions to fit their unique needs.”

BMM provides regulatory training at BMM’s state of the art training facility in Las Vegas, at various locations around the world and at client’s or regulator’s facilities, through the BMM Academy. The training curriculum provides a wide array of no-cost training solutions that include:

* Field Audits
* System Audits
* Wagering Terminal Essentials
* Understanding System Essentials
* Wireless Security
* Forensics/Incident Response
* IT Security Essentials
* Development of Internal Controls
* Cyber Security

Visit BMM Testlabs at G2E #4408

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