Setback in Kentucky Internet Gambling Domain Seizure Case

Michael Jones : March 18th, 2010
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The Kentucky Supreme Court ruled today in a case involving the possible seizure of 141 gambling domain names, although the news wasn’t an end to the ongoing legal proceedings.

The court said it would not rule on the freeze of the affected domains until an owner of one the domains appears to challenge the issue. The court said that the The Interactive Media Entertainment and Gaming Association (iMEGA) and Interactive Gaming Council (IGC) did not have standing in the case, since they do not own any of the 141 domains. Among the affected domains are fulltiltpoker.com and pokerstars.com

iMEGA issued a press release on the decision, and viewed the ruling as a “temporary setback.” Joe Brennan, iMEGA chairman:

In the written decision, the Court clearly indicates they agree with our arguments, and are inviting us to refile, so that the technicality of the standing issue can be resolved. It’s unfortunate, but I can’t imagine that Kentucky’s lawyers will celebrate a ruling that says ‘bring us an owner, so we can rule in your favor’. … All along, it seemed the Court wanted to go our way, and this decision today indicates that is still the case. The Court is telling us that all that is necessary is for one domain owner to come forward, and we likely win.

The case could have wide-ranging effects. If the court finds for Kentucky, then the domains would be closed for the entire world, since Kentucky would take control of the domains and shut them down.

The case will likely continue shortly. The affected parties have 20 days to appeal, and once a domain owner appears, the case will likely move immediately back to the supreme court.

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