Kentucky Seizes Domain Names of Internet Gambling Sites

[thepokerkeep]

Thats 12!

LOL - good catch mister Beacon. Used to be ten, now 12. Truth is I can't count past 10 unless I take my socks off...

[vinism]

Just wanted to give everyone a heads up, we are tracking this story and trying to sort through a bunch a details. Among the things we're trying to figure out are:

1. What is Kentucky law regarding Internet gambling? Are their provisions against Internet gambling, or does it fall under the general anti-gambling laws in Kentucky.

2. Were the sites/domains listed warned before this action?

3. If these sites begin banning bets from Kentucky, can/will they avoid forfeiture?

4. Who developed this list of domains? How was the list developed?

5. Why is Kentucky pursuing this policy? How much money do they believe is being wagered online in Kentucky? And are there other components in their fight against Internet gambling? And if so, what are they?

As soon as we get some answers, we'll post them here.

[bradz21]

Thanks Vinism and everyone for the updates.

[Doolally]

It's certainly going to be an interesting time ahead. If anyone hears anything - remember to keep us all updated.

[vinism]

We're still trying to figure out how registrars handle these sorts of things, including what their legal obligations are. But here's what we have so far:

Kentucky moves to seize 141 online gambling domains

24 September 2008
By Vin Narayanan

Franklin County Circuit Judge Thomas Wingate will be holding a forfeiture hearing regarding domain names to 141 online gambling sites Thursday at 1:30 p.m. in Frankfort, Kentucky. Last week, the Commonwealth of Kentucky was granted an order to seize these domains as part of lawsuit trying force online gambling operators to stop offering services to Kentucky residents.


"Unlicensed, unregulated, illegal Internet gambling poses a tremendous threat to the citizens of the Commonwealth because of its ease, availability and anonymity," said Governor Steve Beshear in a statement. "The owners and operators of these illegal sites prey on Kentucky citizens, including our youth, and deprive the Commonwealth of millions of dollars in revenue. It's an underworld wrought with scams and schemes."

"By seizing the domain names, Kentucky can require that the illegal casino operators use readily available technology to block their domains from being accessed in the Commonwealth," the statement said.

Among the sites targeted by Kentucky are PokerStars, Full Tilt Poker, Absolute Poker, Bodog and Slotocash.

The list of sites targeted was "developed by attorneys (conducting the investigation) and are sites where people from Kentucky, using Kentucky addresses, were able to place bets," said Jennifer Brislin, communications director for the Justice and Public Safety Cabinet, which filed the lawsuit on behalf of the government.

The targeted domains are held by a mix of domestic and international registrars, Brislin added.

Kentucky doesn’t have a law that specifically targets Internet gambling. But it does have laws that prohibit possession and use of gambling devices. In the case of this lawsuit, Brislin says domain names are considered gambling devices.

"Our end game is to stop that activity (gambling) within Kentucky," Brislin said. "We have no interest to shut it down elsewhere in the country or worldwide."

The lawsuit asks for these sites to use "readily available technology" to deny access to Kentucky residents and to pay for prior damages, Brislin said.

Brislin also said that because they don't know who the owns these sites, the lawsuit was the only tool they had available to force action.

While the lawsuit has generated plenty of buzz, it's unlikely that the order will hold up to federal scrutiny, says Buffalo State business law professor Joe Kelly.

"If a state can do this, it would create chaos," Kelly said. "Can you imagine if some province in South Africa asked for seizure if they didn't like violence? Here's an American company putting on a show and allowing South Africans access to it, but because it's against the province's law, they'd ask for the same remedy as Kentucky."

"If the federal government did this, at least it's the country requesting the action -- not a state within a state," Kelly added. "This is sort of thing that should regulated at the national or international level."

Kelly also said that the case would not likely hold up under federal scrutiny.

"This could very well violate the Commerce Clause (in the Constitution). If 50 states could do this sort of thing, there would be a negative impact."

"I can't predict what Kentucky judge would do," Kelly added. "But if someone appeals it to a federal judge, the order won't hold up."

[smathe77]

Who cares about KY anyways?
The fact that online gambling does not generate income for them and that it provides no jobs and tourists is the main issue here.
On that basis, this Governor might as well attempt to shut down the internet as it is...

Good luck with that

[vinism]

The hearing has been pushed back to 3:30 p.m. (Eastern Time) on Friday.

[vinism]

Here's a link to the complaint.

https://www.gpwa.org/news/kentucky_complaint.pdf

[Nandakishore]

I got a mail from Cobus (ReferBack) saying: "We at ReferBack would like to assure all affiliates that both the IGC and Microgaming are doing their best to resolve this issue as quickly as possible. However, if unsuccessful we at ReferBack will keep you informed of any and all necessary changes that might affect you. "


I think this is a quite sensible way of handling the issue instead of changing the link codes without knowing what's going to happen in the future. However, it is possible that in some cases the existing links will lead to nowhere because a .com site has been changed to .net or something else. I don't understand why in such a case a .com link cannot be redirected to a .net site by the affiliate programs.

[matted]

I dont know bout everyone else, but I'm getting very mixed actions... Some are telling me to update links immediately, others are taking a wait and see attitude.

I'm a bit torn... I appreciate the preemptive attempts to ensure there is continual service - but I think it is taken for granted how annoying and difficult constantly updating links can be as many affiliates operate more than one site.

[Buddy M]

Man am I confused, I have my site name with godaddy, with all that's going on, does this mean that I should transfer from godaddy to a company out of the USA ?

I guess what I'm asking, is this something they are going after affiliates on, or the actual affiliate program ?

Thank you

[thepokerkeep]

Man am I confused, I have my site name with godaddy, with all that's going on, does this mean that I should transfer from godaddy to a company out of the USA ?

I guess what I'm asking, is this something they are going after affiliates on, or the actual affiliate program ?

Thank you

At this time, they have only gone after the casinos. If they win (not likely) they may go after us smaller fish. Who really knows what this idiot governor is thinking?

I am with GoDaddy and don't plan on making a move at this time.

I firmly believe either the state supreme court or the US supreme court will squash this within a few weeks. This lawsuit is a joke!

[PhilF (ex-WhichBingo)]

Have only had one eye on this story thinking it wouldn't affect us but just checked out the list ......

About 8/9 bingo sites in there including some biggish names in the world of (US) online bingo.

[vinism]

The case has been continued. As soon as we know the new court date, we'll let you know. Here's the latest information we have on the case:

Judge grants continuance in Kentucky domain case

26 September 2008
By Vin Narayanan

Friday's court hearing to determine the fates of 141 online gambling domains that the Commonwealth of Kentucky is attempting to seize was continued to give online gambling sites and other interests and a chance either prepare their cases or settle the lawsuit.


Franklin County Circuit Judge Thomas Wingate granted the continuance a week after the Commonwealth of Kentucky was granted an order to seize these domains as part of lawsuit trying force online gambling operators to stop offering services to Kentucky residents.

"The Poker Players Alliance is pleased that the court decided to allow for a full review of this case, including arguments from both sides," said John Pappas, executive director of the Poker Players Alliance (PPA).

"Until this point, the state and its hired gun class-action attorneys have acted in an ex parte fashion – only presenting one side of the argument to the court," Pappas added.

"The continuance granted today will ensure all the cards are on the table and allow the current owners of the domain names of the 141 websites to retain ownership in the interim."

Earlier in the day, the PPA had filed an amicus brief opposing Kentucky's attempt to seize the online gambling domains.

"The actions by the state of Kentucky are not only extreme, but groundless in that it can be clearly proven that poker is indeed a game of skill and not chance and thereby poker Web sites should not be part of the state's action," Pappas said. "The amicus brief filed on behalf of the PPA today proves this."

Kentucky authorities say seizing the sites is necessary in order to compel them to stop offering their services to Kentucky residents.

"By seizing the domain names, Kentucky can require that the illegal casino operators use readily available technology to block their domains from being accessed in the Commonwealth," the state said in a statement.

Among the sites targeted by Kentucky are PokerStars, Full Tilt Poker, Absolute Poker, Bodog and Slotocash.

Two sites targeted by Kentucky, LuckyPyramidCasino.com and HighRollersLounge.com, are no longer operating. Several others are already redirecting to .co.uk sites. And Forbes is reporting that goldencasino.com has suspended service to Kentucky residents.

The list of sites targeted was "developed by attorneys (conducting the investigation) and are sites where people from Kentucky, using Kentucky addresses, were able to place bets," said Jennifer Brislin, communications director for the Justice and Public Safety Cabinet, which filed the lawsuit on behalf of the government.

The targeted domains are held by a mix of domestic and international registrars, Brislin added.

"Our end game is to stop that activity (gambling) within Kentucky," Brislin said. "We have no interest to shut it down elsewhere in the country or worldwide."

The lawsuit asks for these sites to use "readily available technology" to deny access to Kentucky residents and to pay for prior damages, Brislin said.

[The Buzz]

Good story in the Louisville Courier-Journal this morning on the delay in the court case. The issue will be taken up again on October 7.

"This is the strangest case I have ever seen in my life," said Frankfort defense attorney Bill Johnson, who said he is representing seven of the 141 domain names.

About two dozen attorneys from Kentucky and Washington, D.C., representing gambling industry trade groups, Internet commerce organizations and freedom of speech groups attended yesterday's hearing.

...

"They may not like my clients and they may think they are bad people, but they haven't proved it," said Johnson, who didn't identify in court the Web sites he represents.

Kentuckians are still able to gamble on many of the online casinos, which still have functioning Web sites.

...

The state has taken control of two Web sites, highrollerslounge.com and luckypyramidcasino.com. Those sites are inoperable, but Justice Cabinet Secretary J. Michael Brown said Kentucky did not shut them down.

Brown said after the hearing that Kentucky's primary goal is to block access to the sites by Kentuckians and that, as demonstrated at the hearing, the state has gotten the attention of the online gambling operations.

"It's clear that if we do enough they will come to us," he said.

Washington, D.C.-based attorney Edward Leyden, who represents the Interactive Media Entertainment and Gaming Association, an Internet gaming trade group, said he was pleased the judge decided to give attorneys more time to make their cases.

Lawrenceburg resident Jay Springate sat in the back of the courtroom yesterday, sporting a T-shirt and hat advertising the popular online poker site PokerStars.

Springate, who said he plays poker and occasionally bets on football games for money on the Internet, said banning online gambling should not be one of the governor's priorities.

"I was really disappointed with Gov. Beshear's use of my time and my taxes as a Kentucky citizen, fooling with this nonsense when we are in the midst of an energy crisis and economic crisis and so many other things," he said.
Beshear spokesman Jay Blanton has said the attorneys representing the state would get paid only if the state wins.

Full story here ... http://www.courier-journal.com/apps/...WS01/809270438

[Nandakishore]

The situation is very confusing. I am getting now daily notices from AMs to either change the banner codes or wait. The Courier Journal report says that the seizure of the gambling sites has been postponed until October 7. Therefore, there need not be any unnecessary hurry in doing all these changes which are very time-consuming.

Since the Affiliate Programs are obviously totally confused, I would like to know what the other webmasters are doing - changing the codes or waiting?

[The Buzz]

Good editorial in the Lexington Herald-Ledger yesterday, saying that the Governor's move to seize control of the 141 sites is puzzling.

http://www.kentucky.com/592/story/538799.html

[The Buzz]

Opponents are lining up to oppose the Kentucky governor.

http://www.forbes.com/feeds/ap/2008/...ap5515715.html

[The Buzz]

and there's a hearing on it all today ...

http://www.courier-journal.com/apps/...WS01/810070409

[The Buzz]

Here's Forbes' story on the hearing ...

http://www.forbes.com/feeds/ap/2008/...ap5521459.html

And Gambling911 kept live updates running during the hearing here ...

http://www.gambling911.com/gambling-...es-100708.html