The long running saga of whether or not the State of Kentucky can seize the domain names of 141 online gambling operators took its latest turn last week.
This story dates back to 2008 when when Kentucky Governor Steve Beshear gave an order for the seizure of 141 gambling domains authorities claimed to be illegal, on the basis that the domains constituted 'gambling devices' pursuant to a 1974 State Law. Among the 141 domains were those of well known operators Full Tilt and PokerStars.com.
Legal wranglings between Kentucky authorities and online gambling operators, represented by industry group Interactive Media Entertainment and Gaming Association (IMEGA), have since ensued and are summarized here.
In January 2009 the Kentucky Court of Appeals ruled that the State didn't have the authority to seize the domain names, overturning a previous decision by District Court Judge Wingate. Late last week, the Kentucky Supreme Court has overturned this decision. But their ruling has turned on a procedural technicality - in order to rule in favor of the gambling operators, at least one of the domain operators must file a case, rather than IMEGA.
To this end, the court has stayed its order for 20 days allowing the appropriate filing to be made.
IMEGA chairman Joseph Brennan claimed the outcome as a positive one for the gambling operators, saying that a judgment in favor of operators was likely and that all that was required was, '...a simple matter of paperwork'.
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