Churchill Downs to Pay $124 Million in Class Action Lawsuit Settlement
Racing and casino company Churchill Downs (NASDAQ: CHDN), organizer of the world-famous Kentucky Derby race, has agreed to pay $124 million to settle two class action lawsuits, according to news reports. Australian computerized gambling system and spinning reel slot machine maker Aristocrat Leisure Ltd. (ASX: ALL) will pay the rest of the $155 million settlement, or $31 million.
The lawsuits, Thimmegowda v. Big Fish Games and Kater v. Churchill Downs, relate to the Big Fish Games online gambling brand, which Churchill Downs sold to Aristocrat in 2018. That year, a 9th Circuit court ruling said the Big Fish's virtual chips indeed constitute online gambling, making them illegal in Washington state, where groups of online bettors launched civil lawsuits over their Big Fish losses, which in one instance stacked up to more than $300,000.
Image source: Getty Images.
Source Fool.com
