Arguments began this week as the Kentucky Supreme Court dealt with the case of the state attempting to seize the domain names of several online poker and gaming sites. Secretary of the Justice for the Commonwealth of Kentucky Michael Brown conducted a civil action last summer seeking to seize the domain names of more than a hundred major internet gambling sites in an effort to enforce the state’s anti-gambling laws.
The state’s argument is that the domain names constituted illegal gaming devices and, under state regulations, were subject to seizure by authorities. Attorneys for the state said that the domain names could be treated like physical gaming tools like slot machines and poker tables. The state does sponsor a lottery and is home to the Kentucky Derby, one of the world’s premier horse races, which draws gamblers from around the world.
Kentucky Supreme Court Justice Lisabeth Abramson asked one of the state’s attorneys during the proceedings about the feasibility of applying an out-of-date law to stop state residents from online gaming. She also questioned the efficiency of such a process. Even if the court rules in the state’s favor, she asked, wouldn’t the online gaming sites simply apply for a new domain name and start the process over again?
If the seizure were to be upheld, then the state would own the domain names of such sites as PokerStars, Full Tilt, Doyle’s Room, Absolute Poker, and numerous other online gaming sites. According to state’s attorney Eric Lycan, the state would put the domains up for public auction if their efforts are successful. He also said that the Legislature created such a broad interpretation of the law prohibiting casino gaming in the state.
Attorneys for industry groups such as the Poker Players Alliance and iMEGA also pointed out several holes in the state’s case. If the state were to seize the domain names, they said, it would not only block access to Kentuckians, but to the entire world as well. They also expressed how the ramifications of how this case could affect the internet in general go well beyond a state trying to stop online gambling.
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