After a decision in the case was postponed from Wednesday until Thursday due to a computer error, Judge Thomas Wingate passed down a ruling that was less than favorable to online poker. The case involves an attempt by Governor Steve Beshear to commandeer 141 internet gambling domain names and forbid Kentucky residents from accessing them. Judge Wingate denied pleas by the Interactive Media Entertainment and Gaming Association (iMEGA) and the Interactive Gaming Council (IGC) to dismiss the case and instead ordered a final forfeiture hearing for Monday, November 17th. Since the decision was released this afternoon, industry organizations have reacted strongly.

The Bluegrass Institute fights for the freedoms prescribed by the Constitution. It is headquartered in Bowling Green, Kentucky and has found itself in the middle of the fray on the side of internet gambling. Its Director of Public Policy and Communications, Jim Waters, told PocketFives.com, “There are 16,000 Poker Players Alliance members in Kentucky and others who need to stand up to Governor Beshear. He ran on a platform of expanded gambling. This is using government to shut down competition. The government has no right to do that. If every poker player in Kentucky would contact their State Representative, this can be stopped.” The competition in question refers to the state’s blossoming horse racing industry and the lottery, both of which offer online wagering opportunities.

With regards to arguments that Beshear’s seizure of domain names violated due process rights given in the United States Constitution, Judge Wingate wrote, “The seizure was only effective after determination by this Court that probable cause existed based upon the evidence presented by the Commonwealth that the domain names were being used in connection with illegal gambling activity available and accessible in Kentucky.”

With regards to arguments made by the PPA that poker was a game of skill, Judge Wingate demonstratively disagreed. He stated, “PPA has not denied that its customers risk something of value, namely money, or that they stand to receive a prize if they win. Instead, PPA urges this Court to deny the element of chance inherent in poker and place domain names offering poker for profit beyond the reach of this statute. We decline to do so.”

As you might expect, the PPA emphatically disagreed with Judge Wingate’s dismissal of poker as a game of skill. The organization’s Executive Director, John Pappas, stated, “Clearly, we believe the judge in this case got it wrong. First of all, we strongly disagree with Judge Wingate’s ruling that poker is not a game of skill. As demonstrated in the amicus brief we filed, skill plays an essential role in being a successful poker player. Additionally, we believe that by confirming Governor Beshear’s actions, the court has set a dangerous precedent for censorship of the Internet. Today’s ruling is a big step backward for both personal rights and Internet freedom.”

In the end, Judge Wingate denied the motions for dismissal by the IGC and iMEGA. Defendants in the case, who are the owners of the 141 internet gambling domain names in question, are able to be granted an exemption from the seizure if they use technology to forbid access to the sites from Kentucky residents. A final forfeiture hearing is scheduled for Monday, November 17th at 10:00am ET in the Franklin courtroom. Appeals are expected in the case.

Rich Muny, known as TheEngineer on PocketFives.com and the PPA’s State Director for Kentucky, stated that the organization is continuing a mass grassroots effort throughout the Commonwealth: “We’re telling our Kentucky members to fight back against this expansion of gambling law in Kentucky. We’re asking them to contact their State Legislators to define poker as a game of skill and not chance in order to clarify Kentucky law. We’re also asking for any new casino legalization bills to include online poker in the Commonwealth.” The PPA has been instrumental in sending over 2,000 letters to lawmakers’ offices, including Beshear’s.

Judge Wingate’s ruling verified that the State had every right to seize domain names under the pretense that they were “gambling devices,” similar to police seizing roulette wheels and slot machines from an underground casino: “The Court is satisfied that the law enforcement interest of the Commonwealth, to curb internet casino gambling, is a judicially cognizable interest sufficient to bring this suit.” In addition, Judge Wingate affirms that domain names are intended to lure players to virtual casinos. Then “Once a player accesses the virtual casino, and maintains connection, with the use of the domain name, a player’s propensity to gamble is tickled.”

We’ll have more for you as it develops. Visit the PocketFives.com Legislative Forum to discuss it and check out the PPA’s website to learn more about this vital organization.

Image courtesy of Churchill Downs website.