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Online Poker in Danger in Kentucky

By Dan | Published Oct 16 2008, 07:26 PM |

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.


Comments
papaGEORGIOOO 

papaGEORGIOOO said:

The judge is incompetant,  he cant even agree that poker is a game of skill.  Fuck the republican mob of anti poker legislators only interested in $$$$$.  This makes me vomit and I dont live in Kentucky.

October 16, 2008 7:46 PM
xxbossmanxx 

xxbossmanxx said:

This might be a whole lot bigger than just Kentucky tho. It could affect us all.

October 16, 2008 8:42 PM
Avery01 

Avery01 said:

This could be very bad for internet poker throughout the US if Kentucky wins this one...

October 16, 2008 8:54 PM
OhToBe 

OhToBe said:

Imagine the future headlines, "China seizes Microsoft.com",  "Iran seizes IBM.com",  everybody seizes playboy.com. blah blah blah.  What a donkey ruling, no thought about prescident.  Complete arrogance.   Let's hope someone seizes the Kentucky horse racing website.   World War 3 on the web with domain seizures.

October 17, 2008 5:17 AM
Kanye-East83 

Kanye-East83 said:

only time ive evere said this,...Im fucking disgusted with the fact that I grew up in KY

October 17, 2008 6:00 AM
Kanye-East83 

Kanye-East83 said:

Just so Ironic,..that the three largest influxes of money into Kentucky are based on Bourbon, Tobacco, and Horse Racing. But god forbif if we let those immoral internet gamblers run around causing havoc,...ohh no,...that can never happen,..Breshear is a joke as a politician and a man

October 17, 2008 6:03 AM
ihateinbreadKYfans 

ihateinbreadKYfans said:

see my username

October 17, 2008 6:52 AM
Kanye-East83 

Kanye-East83 said:

"inbread"? bread is food,..i hink "inbred" is what you were going for there,.lol

October 17, 2008 7:31 AM
rodbama 

rodbama said:

Republican mob??

Governor  Steve Beshear is a Democrat.

October 17, 2008 7:42 AM
papaGEORGIOOO 

papaGEORGIOOO said:

most are Republicans.  Steve is part of the inbred family of horse racing association

October 17, 2008 12:07 PM
Smack2377 

Smack2377 said:

The funny thing is if our government regulated and taxed online poker they would stand to collect around 2 billion dollars a year in tax revenue. Also sites like Pokerstars are traded publicly on the London stock exchange but what do I know I'm not a republican.

October 17, 2008 12:56 PM
mdry93 

mdry93 said:

poker is not a game of skill? i live in kentucky as much as i hate to say it now.  hmmmmm.....maybe i will challenge this judge wingate to a weekly heads up battle and we'll see if skill works itself out then

October 17, 2008 1:09 PM
caaashier 

caaashier said:

smak2377, I'm pretty sure pokerstars is not traded publicly.  Party Poker is traded publicly and that's the primary reason they left the US market.

October 17, 2008 1:29 PM
Dharma 

Dharma said:

This isnt just about poker. Controlling what people are allowed to see and read and do is pretty atrocious. What if you state decides P5s site is a gateway  for criminal activity and decide we aren't allowed to meet as community online and discuss issues? These people are stealing you freedom.

October 17, 2008 2:13 PM
mtown 

mtown said:

So they want a monopoly on betting and gambling in the state? They will allow horse betting and lottery cause they get a piece of both, but the state gets no money from poker.

October 17, 2008 6:41 PM

 
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