The case involving the seizure and forfeiture of 141 internet gambling domain names reached a pinnacle on Tuesday afternoon. The Kentucky Court of Appeals overturned the actions by the State and its Governor, Steve Beshear, sparing the domain names in question for the time being. However, the case may be appealed to the State Supreme Court, although an official announcement by the Kentucky Justice and Public Safety Cabinet has not been given. In total, Tuesday marked a groundbreaking day for the Interactive Media Entertainment and Gaming Association (iMEGA), the Interactive Gaming Council (IGC), and all parties involved.
The Court of Appeals ruled in favor of the internet gambling industry by a 2-1 vote, with Judge Michael Caperton providing the sole dissenting opinion. On the outcome of the case, iMEGA Chairman Joe Brennan told PocketFives.com, “We're really glad to finally put up a win for Internet gaming in the U.S. courts. We're really proud of the work our legal team did because it made up the entire case that the Kentucky Appeals Court based their decision on.” It has been an uphill battle for iMEGA, IGC, and the entire industry, which saw 141 of the world’s largest internet gambling domain names threatened.
The Commonwealth seized the sites in question on the grounds that they were “gambling devices,” similar to slot machines, roulette wheels, and other paraphernalia found in an underground casino. The Court ruled, “It stretches credulity to conclude that a series of numbers, or internet addresses, can constitute a ‘machine or any mechanical or other device… designed and manufactured primarily for use in connection with gambling.’” Therefore, the lack of jurisdiction by the Commonwealth of Kentucky to seize domain names took center stage in the Court’s eyes.
The Poker Players Alliance, which submitted an amicus brief in the case outlining that online poker is a legal game of skill in Kentucky, also weighed in after the Court of Appeals’ ruling. John Pappas, its Executive Director, commented in a press release, “This is a tremendous victory for Internet freedom and the rights of Kentucky residents who enjoy playing online poker.” The organization has 13,000 members in the Bluegrass State. They, along with other concerned citizens, flooded the offices of Governor Steve Beshear with letters expressing their outrage. The case saw such groups as the American Civil Liberties Union and Bluegrass Institute become involved. Both were concerned that the seizure represented government trampling on First Amendment rights.
Rich TheEngineer Muny has been at the epicenter of the firestorm for the rights of online poker players in Kentucky. Muny is the PPA’s State Director there and has served as a local representative of the organization in one of its biggest fights to date. He commented in a press release distributed by the PPA on Tuesday, “On behalf of the thousands of PPA members who live in Kentucky, we hope that Governor Beshear and Secretary Brown will abandon this misguided effort and focus new energies into regulation and taxation of internet poker. This common-sense approach would benefit Kentucky's poker enthusiasts and the revenue will benefit the state as a whole. Rather than spending hard to find dollars on this case, the Governor could actually turn this into a much needed new revenue stream for the Commonwealth.”
In his dissenting opinion, Judge Caperton commented, “I believe it to be a computer system that is, for the period of time linked together for the purpose of internet gambling, unified into one device.” He concluded his argument by stating, “Just as a wire placed into a computer becomes part of the computer, so do the internet domain names that link remote computers for the purposes of gambling become part of the gambling device.” Judges Michelle Keller and Jeff Taylor sided in favor of the internet gambling industry.
In October, Judge Thomas Wingate, a Circuit Court official, upheld the actions by Governor Beshear. He ordered the websites in question to block Kentucky customers, else risk losing their domain names worldwide. The CEREUS Poker Network, Cake Poker Network, and Merge Gaming Network promptly followed Wingate’s orders. Judge Wingate also scheduled a final forfeiture hearing for November, which was later postponed until the following month. In November, the IGC and iMEGA appealed to the Court of Appeals, claiming that websites losing their domain names would suffer considerable harm and that the State did not have jurisdiction to act in the first place.
Other sites named in the case include PokerStars.com, FullTiltPoker.com, and BodogLife.com. Check out the Poker Legislation forum right here on PocketFives.com for the latest on the Kentucky internet gambling ruling.
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