Court of Appeals stops gambling domain seize

  • 1-20-2009

The nightmare for the 141 casinos, sportsbetting and online poker sites involved in the legal dispute with the State of Kentucky is finally over, and the results are more than positive for the gaming industry. The Kentucky Court of Appeals today issue a verdict prohibiting the Franklin Circuit Court from implementing a ruling that initially allowed the Commonwealth of Kentucky to seize over a hundred domain names related or owned by dozens of gambling sites. In a 2-to-1 majority opinion, the Court of Appeals decided that Internet domain names “do not constitute a gambling device under Kentucky law” and that the Franklin County Circuit Court misinterpreted what “gambling device” means.

"It stretches credulity to conclude that a series of numbers, or Internet address, can be said to constitute a "machine or any mechanical or other device...designed and manufactured primarily for use in connection with gambling. We are thus convinced that the trial court clearly erred in concluding that the domain names can be construed to be gambling devices." wrote Judge Michelle M. Keller.

During the hearing, several groups such as PPA, the ACLU of Kentucky and the Electronic Frontier Foundation and the Interactive Media Entertainment & Gaming Association joined forces to oppose Franklin Circuit Court ruling and to prove that Internet domain names are nothing more than "billboards" for the Web sites, and not gambling devices.

The Court in its decision also rejected a petition filed by the Interactive Gaming Council and Sportsbook.com legal team asking the court to hear and evaluate additional arguments also seeking to over rule the verdict issued by the Franklin Circuit Court.

"This is a tremendous victory for Internet freedom and the rights of Kentucky residents who enjoy playing online poker," said "We are pleased that the appeals court has forcefully reversed Judge Wingate's earlier ruling and confirmed many of the arguments that have been raised in opposition to the seizure effort. The Court of Appeals has agreed with the PPA's position that Judge Wingate did not have jurisdiction to issue the order that he entered against these domains and that Secretary Brown has no legitimate right to deprive the citizens of Kentucky of the legal right to play poker online. On behalf of the thousands of PPA members who live in Kentucky we hope that Governor Beshear and Secretary Brown will abandon this misguided effort and focus new energies into regulation and taxation of Internet poker," said Rich Muny, Kentucky State Director for the PPA, who resides in Union, KY. "This common-sense approach would benefit Kentucky's poker enthusiasts and the revenue will benefit the state as a whole. Rather than spending hard to find dollars on this case, the Governor could actually turn this into a much needed new revenue stream for the Commonwealth." said John Pappas, Executive Director of the Poker Players Alliance. 


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