Russia was a so-called ‘gray market’ where poker was neither affirmatively permitted nor explicitly prohibited. The order further explains, “During the Relevant Period, revenues originating from users in Russia were a significant source of revenue for the Company. The Company also failed to consistently make and keep accurate books and records regarding consultant payments in Russia, including by inaccurately recording certain payments as lobbying fees.

The Company failed to devise and maintain a sufficient system of internal accounting controls over its operations in Russia during the Relevant Period with respect to third party consultants, certain of which the Company retained without adequate due diligence or written contracts, and paid without adequate proof of services. Between and while the Company’s shares were registered with the Commission (the “Relevant Period”), the Company paid approximately $8.9 million to consultants in Russia in support of the Company’s operations and its efforts to have poker legalized in that country. This matter concerns violations of the books and records and internal accounting controls provisions of the Foreign Corrupt Practices Act of 1977 (“FCPA”) by the Company. The SEC issued a cease-and-desist order Monday against Flutter and wrote in its summary of findings in which “the Company” refers to The Stars Group:

Violations of the Foreign Corrupt Practices Act Securities and Exchange Commission over The Stars Group allegedly violating foreign bribery law with payments to Russia-based consultants from 2015-2020.Īll of these costly actions by PokerStars and The Stars Group predated Flutter’s purchase of the company. On Monday, Flutter agreed to a $4 million settlement with the U.S. The Dublin-based gambling company settled the commonwealth of Kentucky’s suit against PokerStars for $300 million in September 2021. Flutter Entertainment’s deal struck in 2019 and finalized in 2020 to acquire The Stars Group, the parent company of international iPoker powerhouse PokerStars and lesser mobile sportsbook FOX Bet, came with some delayed costs.

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