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Judge to Rule Oct 15 on Kentucky Online Poker Domain SeizureWed, Oct 8th, 2008 @ 12:00am After hearing arguments in a Franklin County courtroom yesterday from both sides regarding Kentucky Governor Steve Beshear's directive to seize 141 online gambling domains, including such major online poker sites as Bodog, CakePoker, Full Tilt Poker, Ultimate Bet, and PokerStars, Judge Thomas Wingate stated that he needs one week to review both sides of the case, so he plans to announce his final historic ruling on October 15th. Opposition presented arguments claiming that the Commonwealth of Kentucky has no jurisdiction to seize domain names located in cyberspace from businesses that are legally licensed in their respective locations, and adversely affect these businesses that legally run elsewhere around the world. They also challenged the application of the term 'gambling device' to online gambling sites, and by extension whether the sites' URLs can be forfeited according to Kentucky state law if they were such a device. Counselor Foote, representing the Commonwealth of Kentucky, noted that the California 9th Circuit has ruled that a domain name is property which can be seized. It was also noted that the state of Washington has seized the domain names owned by Bodog.com. STATES CANNOT REGULATE COMMERCE NOR ENGAGE IN PROTECTIONISM Edward Leyden, president of the Interactive Media Entertainment & Gaming (iMEGA) cast the domain seizure as an attempt to regulate commerce where the state has no jurisdiction, especially foreign commerce. Leyden stressed the global nature of the Internet, which the Supreme Court has recognized, and how many prior cases to regulate the Internet have already failed. He also raised how the online horse race betting site TwinSpires.com is operated by Churchill Downs, home of the Kentucky Derby, though it is licensed in Oregon. He asked if online gambling is so objectionable to the Commonwealth, then why is TwinSpires.com permitted? Ironically, TwinSpires' website claims horse racing and poker are one in the same: "Just like poker, you are not playing against the house. You are playing against the rest of the people wagering on racing; the better your strategy, the more you can win." Leyden pointed out that permitting the TwinSpires.com gambling site, but not others, served the interest of the state, and how under the Commerce Clause, states are prohibited from engaging in discrimination as a means of eliminating competition, and that the protectionism motivating the seizure is unconstitutional. PokerPages.com will keep you posted as further developments arise. Read Related Articles:
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