Amaya to have been multed a €5.9 fine by Italian taxation office

Canadian online gambling games operator - Amaya Gaming - has settled a dispute over the tax repayment for the last years operation of its leading brand - PokerStars - in Italy.

On Wednesday the corporation announced its agreement to repay €5.9 million to Italian taxation office to resolve the argument over the PokerStars work in Italy during the period since 2009 until 2014.

In March 2015 that was the first time when Italian taxation officers claimed the liability of the company to pay the tax after the fiscal agency of the country Guardia di Finanza, accused PokerStars controlling company - Rational Group - of using its subsidiaries for “fraudulent tax evasion” in Italy. According to Guardia’s report, thanks to a certain scheme, about €300 (with €85 bound to be transferred to Italian budget) were withdrawn and part of PokerStars revenue within Apennine Peninsula transferred to Rational subsidiary accounts.

Amaya insists that the last repayment covering all the money liable to Italian authorities for the period of time indicated will officially put an end to the case. So Amaya will be free from any additional tax liabilities for 2014 financial year.

The total sum under the agreement + accompanying costs was taken from the escrow account that was set up after the Amaya Rational Group acquisition from Isai and Mark Schneiberg - former owners - in 2014.

Unfortunately, there’s no similar account to resolve company’s problems in Kentucky. In November the judge of the state rendered a decision to charge Amaya/Stars a $290 million fine for its transactions within the state without the local licensing. Shortly before Christmas the judge has increased the compensatory amount three times. The company announced its intention to appeal the verdict. Otherwise, Schneibergs will be demanded to settle the debt.

The Italian compromise was a kind of pleasant news for the investors while they were watching Amaya stock price to have been going down dramatically since the company lowered its revenue forecast for the previous year after the publishment of its third quarters financial report. Starting from November 9th 2015 the stock price of the company has fallen down from C$31.23 to C$15.96 by the end day on Tuesday. However, the beginning of the exchange session on Wednesday was marked with a price shot up (not for a long time though).