PokerStars Victorious in Class Action Lawsuit
A class action lawsuit against PokerStars seeking to recover gambling losses has had one count dismissed from federal court.In a ruling with far reaching implications, U.S. District Court Judge David R. Herndon, said that PokerStars is “more akin to a third party service provider that provides a forum for others to play the game and does not have a stake in how the game is decided.”
Jeff Ifrah, the founder of Ifrah Law, released a press release after the ruling which read, “This is a major victory for PokerStars and instructive for other online gaming providers facing similar attacks from plaintiffs seeking unjust windfalls. In our very first pleading, we clearly proved that the plaintiff’s case lacked any merit.”
Kelly Sonnenberg was looking to recover gambling losses of PokerStars’ Illinois players under the Illinois Loss Recovery Act. The act allows people to collect losses on behalf of third parties as long as the third party failed to make its own claim within six months of the losing wager.
However, the court ruled that the winner is liable to the loser and in this instance PokerStars acted as a “conduit for transmission of the prize money to the winner”. This means that PokerStars cannot be held accountable under the Loss Recovery Act.