Friday 18 December 2020 10:28 am

Paddy Power owner Flutter Group hit with whopping $870m fine

Flutter Group has been hit with an enormous $870m fine after a Kentucky court ruled a previously vacated judgment had been reinstated. 

Yesterday the Kentucky Supreme Court reinstated a ruling against The Stars Group, which merged with Flutter in 2019 in a £12.2bn deal, saddling Flutter with an enormous fine in the process.

Read more: Paddy Power owner Flutter in $4.2bn deal for FanDuel stake, sending shares higher

The original award of damages against The Stars Group was made in 2015, but vacated three years later,  approximately a year before the merger. 

“Flutter is wholly surprised by today’s ruling and strongly disputes the basis of this judgement, which, it believes, runs contrary to the modern US legal precedent,” the company said.

Read more: Flutter hires former Labour deputy leader Tom Watson as an adviser

The betting giant said it had a number of legal options available and that it was “confident that any amount it ultimately becomes liable to pay will be a limited proportion of the reinstated judgement.”

Flutter said its balanced sheet “remains robust”. 

Today Flutter’s share price is down around 2.2 per cent.

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