Horseracing fantasy contest operator DerbyWars could pay up to $1m to resolve a lawsuit brought by racetrack operator Stronach Group.

Last month, a federal court in California ruled in favor of a lawsuit Stronach had brought against DerbyWars’ parent company Horse Racing Labs (HRL) in December 2015. The court supported Stronach’s view that fantasy contest entry fees were the equivalent of real-money wagers under the Interstate Horseracing Act (IHA) of 1978.

The ruling paved the way for Stronach to file a claim for monetary damages against HRL due to DerbyWars having offered fantasy contests on races held at Stronach tracks without compensating Stronach. At the time of last month’s ruling, DerbyWars CEO Mark Midland suggested his company was considering an appeal but the parties have now reached a court-approved settlement.

The settlement approved on Tuesday by US District Court Judge James Otero calls for HRL to pay Stronach $1m in damages but this sum can be cut in half if HRL agrees to pay $250k within three business days followed by 12 monthly payments of $20,833 each. HRL has the option of paying off the outstanding amount faster if it’s capable and so inclined.