On October 22nd, lawyers for the Interactive Media Entertainment and Gaming Association (iMEGA), Interactive Gaming Council (IGC), and a handful of websites appeared in the Kentucky Supreme Court in Frankfort. The case at hand stemmed from the seizure and potential forfeiture of 141 internet gambling domain names that began in September of last year. After a successful Court of Appeals ruling in January, the internet gambling industry was once again under fire. Present in the courtroom was Ian Ramsey, Kentucky counsel for the IGC, who joins this week’s edition of the PocketFives.com Podcast sponsored by Carbon Poker.

Six of the seven Kentucky Supreme Court justices were present for the hearing, which lasted about 90 minutes and saw counsel for the State ardently defend its right to seize domain names on the grounds that they constituted “gambling devices,” a term typically reserved for tangible items you’d find in an underground casino. When the smoke cleared, Ramsey told the PocketFives.com Podcast, “I took away a court that was very interested. I felt a very concerned set of justices on the way Secretary Brown had proceeded in this case.”
Kentucky Justice and Public Safety Cabinet Secretary J. Michael Brown (pictured at left) brought the legal action on behalf of the Commonwealth at the urging of Governor Steve Beshear, who is allegedly attempting to protect the state’s main gambling interest, horse racing. On how organizations like the IGC and iMEGA became involved rather than the actual owners of the domain names, Ramsey commented, “The IGC played a very pivotal role. They came into this case through something called associational standing. Their members had interest not only in the gaming industry, but also in terms of the specific domain names involved.”

On any moments during the proceeding that took him by surprise given the amount of ground covered by the justices, Ramsey revealed, “There was a moment during the questioning of Secretary Brown’s counsel. Through this case, Secretary Brown has attempted to paint these domain names and this industry with a very broad brush in saying that it’s akin to criminal conduct. The justices didn’t like that.” One of the justices noted that internet gambling was not something that was “inherently illegal” like cocaine.

The ramifications of the case on both local and global levels have been hotly contested. Ramsey explained what might come out of the debate: “It defines for the people in Kentucky what our statutes really mean. We’re dealing with a statute that’s 30 years-old and has never really been interpreted through the age we live in today. For the world, there is a question of where is a domain name really located and does a state have the right to reach out and grab them.” Once and for all, the question of where a domain name is located may finally be answered. Is it on a player’s computer? Is it on a server located offshore? Is it somewhere in between in cyberspace?

Finally, Ramsey explained that he expected the justices to move “with some speed” in handing down a decision, although several industry experts expect the process to last until the first quarter of 2010. Ramsey noted, “The potential exists that it could set a precedent, but I hope that it would be short-lived. I think if that occurred here in Kentucky, the U.S. Supreme Court would be interested in hearing this case because there are issues that don’t involve just the citizens of Kentucky, but also the citizens of the world.” If the Commonwealth were successful, the domain names at risk would be inaccessible worldwide.

Check out the rest of this week’s PocketFives.com Podcast.

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