Prosecutors in the Commonwealth of Kentucky are engaged in a battle with Amaya Gaming Group, the owner of PokerStars and Full Tilt, which could cost the company a whopping $870 million.

The civil suit was filed years ago against multiple operators including PokerStars and PartyGaming under an 18th century Kentucky statute. Bwin.party digital entertainment, the owners of PartyGaming, opted to settle the claims in 2013 for $15 million. It is believed the main catalyst to settle was that the company at the time was preparing to enter the New Jersey regulated gaming marketplace.

Amaya is also expecting to launch both PokerStars and Full Tilt early next year after being granted a license in coordination with Atlantic City's Resorts from the New Jersey Division of Gaming Enforcement (NJDGE) in September of this year.

Recently prosecutor William Hurt successfully argued to Franklin Circuit Judge Thomas Wingate being granted $290 million in penalties. Under a Kentucky statute, Hurt is attempting to claim triple the damages bringing the total potential liability to Amaya to $870 million.

It appears that the case is far from over with Amaya disputing these claims. In a press release, the gaming company revealed that PokerStars generated approximately $18 million in aggregate gross revenues in Kentucky during the period between October 12, 2006 and April 15, 2011, the timeframe of the lawsuit.

PokerStars also points out that a similar case against the gaming company in the state of Illinois was dismissed earlier this year. Furthermore, the press release states that, if the Commonwealth of Kentucky is successful in the suit, Amaya would seek to recover damages from the former owners of the PokerStars business.

The Poker Players Aliiance (PPA) also has got involved in the dispute on behalf of the approximately 14,000 Kentucky players which deposited on PokerStars since Oct. 12, 2006. PPA attorney Don Cox is fighting that any damages should be granted to the poker players, instead of the Commonwealth.

Hurt argues that this is a ploy to prevent Amaya from paying triple in damages claiming that they are working directly with Amaya and suggested they are also being funded by PokerStars.

“They (Amaya and the PPA) have tried to convert this into a single-party case in order to not have to pay the treble damages,” Hurt stated in court this week.

Cox vigorously denies the claim stating that they are independent of PokerStars and are entitled to intervene on behalf of the poker players.

“We are not funded by PokerStars," stated Cox. "There is no evidence in the record to support that, Moreover, the state statute allows the poker players to intervene."

Amaya, for its part is pleased that the PPA is now involved in this potentially expensively matter.

"We welcome the intervention of the Poker Players Alliance to this suit and believe they represent the true interests of Kentucky residents and Kentucky poker players," said Vice President of corporate communications for Amaya Eric Hollreiser. "While we do not believe the suit has merit and will continue to pursue the case in the courts, if there is a monetary judgment it should go toward the consumers who played on PokerStars and not to line the pockets of opportunistic plaintiff’s attorneys.”

Industry experts don't expect a quick resolution to this matter given both the size of the award and the multiple parties involved.

PokerNews will be sure to keep an eye on iGaming developments in the Commonwealth of Kentucky and across the United States.

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