DOJ Gives Kentucky $6 Million to Settle Case Against Pokerstars and Full Tilt Poker

PokerStars and Full Tilt Poker tied up yet another legal loose end on Wednesday when it was announced that the state of Kentucky had settled its claim against the two sites from 2008 in exchange for $6.075 Million in funds.

The payment actually comes in connection with PokerStars settlement with the US Department of Justice last year in connection with the April 2011 Black Friday indictments. The settlement also resulted in the purchase of Full Tilt Poker by PokerStars. The DOJ is giving the $6 Million in funds from that settlement to Kentucky to settle the five year old case.

The original case, Commonwealth of Kentucky ex rel. J. Michael Brown, Secretary, Justice and Public Safety Cabinet v. 140 Internet Domain Names, sought to seize the domain names of PokerStars, Full Tilt Poker, Ultimatebet.com, and 138 other domains that conducted illegal internet gambling activities in the state.

Governor Steve Beshear praised the settlement saying that “As a result of our bold and steadfast determination to protect Kentucky consumers, our signature horse racing industry, and legitimate charitable gaming interests, unlicensed and unauthorized internet gambling has been substantially curtailed in Kentucky, and we’ve created a framework for the rest of the country to manage the issue in their own jurisdictions.

The man who filed the suit originally on behalf of Kentucky, Justice Secretary J. Michael Brown, said of the settlement that he was ” pleased with the disposition of this case with regard to the two major players in this arena, and I’m grateful to our legal team for their persistence over the past five years.”

The funds received in settlement of the claim against the two sites will go towards Kentucky’s general fund for 2013.