On Thursday, many in the online poker industry expected the Kentucky Supreme Court to hand down a decision in the case involving the seizure and potential forfeiture of 141 internet gambling domain names, including those belonging to PokerStars and Full Tilt Poker. However, no such verdict was rendered, leaving the case up in the air until at least mid-March. Despite the delay, the Interactive Media Entertainment and Gaming Association (iMEGA), one of the leading parties in the case, remains optimistic about its chances.

iMEGA Chairman Joe Brennan told PocketFives.com that the trade organization expects a positive verdict for the owners of the 141 internet gambling domain names in jeopardy: “As far as we’re concerned, we’re confident that we’ve won in Kentucky. We’ve moved on.” January 21st is one of 10 dates listed in the calendar of the Kentucky Supreme Court on which the judicial body hands down decisions. The next one is March 18th, with others taking place on April 22nd, May 20th, June 17th, August 26th, September 23rd, October 21st, November 18th, and December 16th. There is no court in February or July.
In October, the Kentucky Supreme Court (pictured at left) heard oral arguments in the case, during which iMEGA presented alongside the Interactive Gaming Council (IGC) and attorneys for several of the websites affected. Two months later, Commonwealth attorneys filed a motion to add names to the case, charging, “The Commonwealth has learned the identity of certain entities and individuals involved in internet gambling operations, some of whom are U.S. citizens. The Commonwealth asks for leave to amend its complaint to add causes of action against these individuals and entities.”

Who the Commonwealth was targeting remains a mystery, as requests by iMEGA to obtain the list were unsuccessful. The motion, which was not acted upon, called for a January 20th hearing in front of Judge Thomas Wingate to address the additional names, although that meeting did not occur. Judge Wingate originally upheld the State’s seizure of the 141 internet gambling domain names in an October 2008 ruling. One year ago, the Kentucky Court of Appeals ruled by a two-to-one margin that the URLs did not constitute “gambling devices” under state law.

Many in the industry speculated that the December motion to add names meant that the Kentucky Supreme Court was on the brink of handing down a decision. In a press release distributed shortly after the motion was filed, Brennan commented, “It’s odd that Kentucky’s lawyers would try something like this at such a late date, since we’re expecting a decision on this matter from the State Supreme Court any day now.” Now, at least two more months will pass until any further direction is given.

One month after the Kentucky Supreme Court hearing on October 22nd, officials from the U.S. Treasury and Federal Reserve delayed mandatory financial services industry compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA) by six months to June 1st. Posters on PocketFives.com were ecstatic to hear the news, which was handed down one day after Thanksgiving. PocketFives.com member Slingtownorbust reacted in a thread in Poker Legislation: “The biggest thing here is that there is enough attention drawn to the UIGEA that most likely it will be overturned in favor of regulating the industry which is the ultimate goal.”

PocketFives.com member Jennifear added, “On the surface, it's a small victory that only delays the inevitable in some cases. Where the real good news lies is that this probably will help us get legislation passed before the regs go into effect.”

If Commonwealth attorneys were successful, sites like FullTiltPoker.com and PokerStars.com would be inaccessible worldwide. The state may also look to regulate internet gambling through its own legislature as a result of the legal squabble given the amount of attention paid to the case by local and national media.

Multiple successes for internet gambling on the state level could ultimately help push federal measures along, such as Congressman Barney Frank’s (D-MA, pictured at right) HR 2267. The bill, which establishes a complete licensing and regulatory framework for internet gambling companies to solicit U.S. customers, is up to 65 co-sponsors on both sides of the aisle and may be marked up in the House Financial Services Committee as soon as February.

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