Irish gambling giant Flutter Entertainment announced Thursday it would appeal a $330 million court ruling in Georgia. A Georgian court verdict last week ruled Flutter and its associate Spribe liable in a case filed by Aviator LLC, a former shareholder of Flutter’s Georgian unit, Adjarabet, ordering the defendants to pay damages.
The Court Case Did Not Go Flutter’s Way
The legal battle centers around the “Aviator” online game, which Aviator LLC claims is its intellectual property. Aviator LLC maintained that Spribe had filed “Aviator” trademarks in bad faith with full knowledge of Aviator LLC’s prior rights over the name and associated image. The lawsuit also sought to prevent Adjarabet from using the Aviator name and image and demanded substantial damages.
On 20 August 2024, the Court of First Instance in Georgia ruled in favor of Aviator LLC, invalidating Spribe’s trademark registrations. The court also ordered Adjarabet to pay $330 million in damages to Aviator LLC. Neither Flutter nor Aviator LLC has disclosed the specific breakdown of the damages between the defendants.
Georgia Remains a Promising Market
Flutter Entertainment, which operates well-known brands such as FanDuel, Betfair, and Paddy Power, expressed surprise at the ruling and vocally contested both the legal basis behind the decision and the amount awarded. The company described the damages as “egregious” and disproportionate to the economic impact of the intellectual property in question.
According to Flutter, Aviator’s claim was without merit, leading to the decision to appeal. The gambling giant noted that the Aviator game generated some $7.5 million in revenue in Georgia last year. Flutter is adamant that such financial figures do not justify the hefty damages awarded by the court.
The level of damages sought is egregious in nature and bears no resemblance to the actual economics of the property under debate.
Flutter Entertainment statement
The ruling represents a significant legal and financial challenge for Flutter. The company has been focused on expanding its global footprint, first purchasing a 51% stake in Adjarabet in 2019 and later buying the remaining 49% stake in 2022. The outcome of this appeal can have substantial consequences for Flutter’s operations in Georgia and perhaps other markets where it operates.
For now, Flutter’s immediate focus will be overturning the court’s verdict while mitigating any potential financial impact of this significant legal setback. The operator’s decision to spend time and resources on an appeal highlights the importance of the Georgian market. Furthermore, Flutter aims to avoid setting a precedent that could lead to more lawsuits in the future.
Source : GamblingNews