A full panel of 6 Judges of the Kentucky Supreme Court are currently deliberating on whether the State of Kentucky has the authority to seize the domains of 141 online gambling sites.
A decision on the case is expected in the next couple of weeks and will finally bring an end to a legal battle that began in the fall of 2008, when Kentucky Governor Steve Beshear gave an order for the seizure of 141 gambling domains authorities claimed to be illegal. A subsequent District Court ruling by Judge Thomas Wingate agreed that Beshear had the authority to seize the domains, and the online gambling community, lead by IMEGA bit back with an appeal.
In January this year, the Court of Appeals found that the State of Kentucky did not have the authority at law to shut the sites down and Judge Thomas Wingate had erred in his adjudication of the issue. The State then sought to take the matter to the Supreme Court and arguments for both parties are now concluded and a ruling is expected soon.
Lawyers for the State maintain that the websites constitute 'gambling devices' under Kentucky law, and are therefore illegal where used by players from within Kentucky. They argue that the location of the online gambling operators and the fact that they are beyond the jurisdiction of the State's authority does not make the offering of the service to Kentuckians legal.
Lawyers representing the online gambling sites maintain that the simple fact that Kentucky has no law that prohibits online gambling means it cannot be illegal, and even if it is, the State has no jurisdiction to seize domains registered outside Kentucky. Current law with respect to gambling prohibits the use of 'gambling devices' not otherwise authorized, and websites don't meet this definition.
Bill Johnson, attorney for the online gambling sites said, 'The ultimate issue in this case is whether a domain name is a gambling device under the statute. This case should have never proceeded in the beginning.'
Among the 141 sites at the center of the dispute is Full Tilt poker. Apparently they have hedged their bets and obtained a ruling from the UK's High Court granting an injunction against their domain registrar (Safenames.com) from being able to transfer the fulltilt.com domain in compliance with a Kentucky seizure order should the Supreme Court rule in favor of the State.
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