When faced with an attempted class action in the plaintiff-friendly Southern District of Illinois, PokerStars turned to Ifrah Law to defend them. Not only did this case pose the risk of a multi-million dollar hit to PokerStars, but a money judgment would have opened the door for related class actions against online poker operators offering services without a license.

The plaintiffs filed the suit under the Illinois Loss Recovery Act, which allows individuals to collect losses on behalf of third parties, providing third parties fail to make their own claim within six months of losing the wager. Ifrah successfully argued that PokerStars was not liable. The court agreed with Ifrah, stating that PokerStars served as a third part service provider – only providing the forum for others to play and does not have stake decided in how the game plays out.

The Judge’s decision in this case was monumental for the online gaming industry and likely closed the door on future class actions against PokerStars. Further, this case provides precedent for other class actions that may arise against online gaming operators.

(Kelly Sonnenberg v. Oldford Group, Ltd., and Rational Entertainment Enterprises, Ltd. (No. 13-0344-Drh) (S.D. Il.))