This week featured a landmark moment for the online poker industry. A three judge Court of Appeals panel in the Commonwealth of Kentucky ruled in favor of 141 internet gambling domain names, blocking the actions by Governor Steve Beshear, who ordered their seizure last September. Among the organizations on the ground in Kentucky is the American Civil Liberties Union (ACLU), which filed an amicus brief in the case addressing violations of the First Amendment of the United States Constitution. ACLU of Kentucky attorney Bill Sharp joins us this week on the PocketFives.com Podcast to discuss the implications of the appeal as well as the future of its involvement in the case.
The ACLU joined a consortium of organizations fighting for the rights of the internet gambling industry in Kentucky. The Poker Players Alliance, Network Solutions, and the ACLU represented a handful of groups that filed amicus briefs in the case. Sharp explained why the ACLU chose to throw its hat into the ring: “The primary reason that the ACLU of Kentucky became involved is because we believe the Court’s order authorizing the State to seize the 141 internet gambling domain names violated the First Amendment’s protection of free speech. Specifically, we believe that the seizure of the domain names represented an over-broad regulation on internet speech.”
PocketFives.com recorded the interview with Sharp on Wednesday just before it was announced that the Commonwealth of Kentucky had appealed to the State Supreme Court. The Court of Appeals primarily focused on whether the State had jurisdiction to seize the domain names as “gambling devices.” Contrastingly, amicus briefs allow outside organizations to offer up insight that parties in the case might not otherwise provide. Sharp explained, “We would certainly be interested in submitting another brief to [the Kentucky Supreme Court] outlining the Constitutional issues we raised to the Court of Appeals.” No timeline has been given as to when the Kentucky Supreme Court will announce whether it will take on the case.
As an organization located in the Bluegrass State, the ACLU of Kentucky is involved in a wide variety of litigation. Sharp explained that everything from Amish rights to internet gambling is currently on its radar. On the latter’s place in the minds of Kentucky residents, he explained, “Gambling and gambling related issues are a complicated set of issues, not only for the public, but also for legislators here in Kentucky given the State’s history with horse racing and lottery sales. It’s an ongoing battle regarding the role of gambling in this state as well as the extent to which future gambling enterprises are to be sanctioned.” Louisville, the site of the Court of Appeals case, is home to the annual Kentucky Derby, held on the first Saturday in May. TwinSpires.com, which allows online wagering on horse racing, is owned by the Derby’s parent company. The Horseshoe Casino, operated by Harrah’s Entertainment, lies across the Ohio River in Indiana.
The Court of Appeals ruling was one victory in a long line of litigation that is likely to occur. Sharp commented on its effect in the short-term: “It certainly has value in the state insofar as an interpretation of Kentucky law. In terms of value outside of the state, given the narrowness of the ruling, it’s unlikely to have a great deal of force because it’s limited to interpretation of Kentucky state law defining what a gambling device is.” The three judge Court of Appeals panel ruled 2-1 that the State did not have jurisdiction to act. In a dissenting opinion, Judge Michael Caperton concluded that domain names are part of a broader “gambling device.”
The Kentucky internet gambling case has brought familiar organizations like the Poker Players Alliance and Interactive Media Entertainment and Gaming Association together with the ACLU, Bluegrass Institute, and Center for Democracy and Technology (just to name a few). It has also grabbed the attention of local and national media outlets. Learn more about the ACLU of Kentucky as well as the national ACLU organization.
Check out the rest of this week’s PocketFives.com Podcast featuring ACLU of Kentucky attorney Bill Sharp.









