Kentucky judge rules against gambling domains

In a stunning decision that is guaranteed to be appealed, in the Kentucky domain name seizure case, the court ruled against the domain name defendants and in favor of the state on virtually every issue.

Franklin County Circuit Court Judge Thomas Wingate gave the affected Internet gaming sites until Nov.17 in which to install some form of blocking software to prohibit access by Kentucky residents, or a hearing on the motion for forfeiture of those domain names will go forward and the domain names will be turned over permanently to the state.

In his 43-page opinion, Judge Wingate ruled that the court has jurisdiction over the 141 online gambling site domain names that were seized by the Commonwealth of Kentucky.

He further ruled that poker is “illegal gambling” under the Kentucky statute, and who wins and who loses is based entirely on luck – the cards they are dealt.

Finally, Judge Wingate held that the associations seeking to represent the domain names – the Interactive Gaming Council (IGC) and the Interactive Media Entertainment & Gaming Association (iMEGA) – did not have standing to represent any of the parties and would not be allowed to intervene on their behalf.

Those organizations, along with the Poker Players Alliance and other interested groups, will be permitted to continue to submit amicus curiae (friend of the court) briefs.

In addressing the defendants’ arguments that by interfering with the domain names of various Internet sites, the floodgates would open and pandemonium would ensue, Judge Wingate stated that “this doomsday argument does not ruffle the Court.” He concluded his ruling by noting that the Internet is not above the law and that any illegality or abuses of the Internet would be reined in.

Procedural background

By way of background, Judge Wingate noted that the complaint was filed by the Commonwealth on Aug. 26, and was accompanied by a request that the file be sealed until the hearing on the seizure motion. That request was granted; thus, none of the defendant domain names knew about the complaint or the plaintiff’s seizure motion.

On Sept. 18, the Commonwealth presented evidence that computers located in Kentucky were, “through the use of domain names,” able to access gambling Web sites over the Internet offering online slot machines, roulette and poker. They also introduced testimony from a cybercrimes expert that domain names were devices that allow Kentucky residents to engage in illegal gambling.

Based on the evidence and testimony presented, the court ordered seizure of the domain names. The court found probable cause existed to support a finding that the defendant 141 domain names were being used in connection with illegal gambling activity with the Commonwealth. It was at this point that the court required the service of the seizure order on each domain name registrar and any other person identified in the WHOIS information database as claiming ownership for each of the domain names.

The court scheduled a hearing for Sept. 26 to determine whether any party was entitled to return of their property or whether the domain names would be forfeited to the Commonwealth. After a brief continuance, the hearing went forward on Oct. 7 and, at the conclusion of the argument, the court took the matter under submission. Today, the judge issued the order.

Legal decision

In his opinion, Judge Wingate first addressed whether the court had subject matter jurisdiction over a civil forfeiture action involving Internet domain names. Without a finding of jurisdiction, the court would have no power to rule in this case.

Defendants claimed that since there was no finding of criminal activity by the domain names, they could not be the subject of seizure. In rejecting the defendants’ arguments, the court ruled that it does have jurisdiction to issue a civil, not criminal, seizure order with respect to the domain names which the plaintiff claims are used “in connection with on-line or internet gambling activities available and accessible within the Commonwealth” in violation of KRS 528.

The court also found that it had “in rem” jurisdiction over the domain names – in other words, that they were “property” that could be seized. The defendants had argued that a domain name is like a telephone number or an address, just a collection of letters and numbers, and therefore, it could not be subject to seizure or forfeiture.

But Judge Wingate found that that the domain names were property since they had value – they have been auctioned and sold and assessed a value for tax purposes – and, further, that they had been the subject of forfeiture by the Department of Justice.

In a final rejection of defendants’ jurisdictional arguments, the court ruled that the domain names had an actual presence in Kentucky and thus could be seized there. Specifically, the defense had argued that the domain names had no situs (i.e., physical presence) in Kentucky because none of the registrars or domain name authorities are located in Kentucky.

Judge Wingate disagreed, finding that the Web site the domain name is connected with interfaces with the player to entice the player to put money down and determined that those interfaces were “rooted in the domain name” and “ubiquitously present” in them.

The court reasoned that because the domain name was visible whenever anyone playing in Kentucky went on the Web site, that fact was enough to find “presence” in Kentucky.

The court was equally dismissive of the defendants’ substantive arguments. Defendants had argued that domain names are not devices as intended in the Kentucky statute, where gambling devices are defined as tangible devices such as slot machines and roulette wheels. But the court rejected this argument, interpreting the intent of the Kentucky law and not limiting it to the literal meaning of the term “gambling device.”

Thus, Judge Wingate concluded that the domain names, “by reason of their illegal or unlawful use,” are gambling devices under Kentucky law. The court ruled that domain names are “virtual keys for entering and creating virtual casinos from the desktop of a resident in Kentucky,” and, thus, can be seized the same as any machine.

Judge Wingate also rejected defendants’ argument that poker is not gambling as defined by Kentucky law because it is a game of skill, not chance, and is played against other players and not the house. In its most confounding decision, the court ruled that chance “is the element which defines its essence,” specifically finding that “no matter how skillful or cunning the player, who wins and who loses is determined by the hands the players hold.”

Finally, in addressing the issue of standing (who had the right to appear in court on behalf of the parties) the court found that, contrary to the defendants’ arguments, the Secretary of Justice and Safety Cabinet as opposed to the Attorney General of the Commonwealth of Kentucky was an appropriate law enforcement official to commence this action.

Industry organizations shut out

The court also ruled in favour of the plaintiff’s argument that the PPA, the Internet Commerce Association (ICA), Network Solutions, Inc. (NSI), IGC and iMEGA, did not represent any party to the case and therefore lacked standing to argue in the court. However, the court indicated that it would continue to permit those entities to present amicus curiae briefs to help the court in making its rulings.

The court found that only parties such as playersonly.com, pokerhost.com and seven others, who claim to be the domain names in question, have standing in court. However, the judge warned these parties, who have declined to identify their clients (the actual registrant or owner), that they would have to disclose the identity of their clients and describe the nature of the clients’ interests at further hearings.

As for its ultimate holding, the court denied the defendants’ motions to dismiss the action and instead modified its earlier seizure order to require that within 30 days, if any of the domain names, their registrants or agents, install applicable blocking software to prevent access to their site from within Kentucky, they will be relieved from the seizure order.

Thus, by Nov. 17, under the judge’s order, the affected Internet gaming sites will have to install some form of software to prohibit access by Kentucky residents, or the domain names will be turned over to the state.

An appeal is expected. In fact, even before Judge Wingate’s ruling today, the parties representing the online gambling industry promised to appeal any adverse decision.

DRAGON’S DEN ON BBC PUTS GAMING ALERTS BACK IN THE SPOTLIGHT

Viewers of BBC 2 were given another look at the Dragon’s Den episode where two business partners, Emmie Matthews and Ed Stevens, received a £200,000 investment to give their company Gaming Alerts Limited a kick start when the show re-aired recently.

Theo Paphitis decided to make the £200,000 investment for 30% of the company, which was settled after he refused offers of 10 and 25% stake. Many of the other Dragons were a bit skeptical of the business model and decided to pass on the idea, which gave Theo a leg up in the negotiation process. In the end, however, all parties were happy with the deal.

Although Gaming Alerts, http://www.gamingalerts.co.uk/, began with and still does promote all aspects of online gaming, the company soon found that online bingo is the booming industry in the UK, and around the world. The company has since decided to focus more of their attention and efforts on the online-bingo industry.

Additionally, after doing extensive research into the international bingo market, along with their experience on the portal site, the company has launched a new bingo site in Spain. Feriabingo.com, which launched last week, is an exclusively Spanish-speaking online-bingo site targeted for players in Spain.

“After finding out how saturated the market is in the UK, we’ve decided to focus our attention on other European markets,” Ed said. “We’re excited about the new opportunities we have in the works with Theo and hope Spain proves to be a success.”

In keeping with the online-bingo focus, the company launched a new Online Bingo Forum at http://onlinebingoforum.co.uk/, which provides bingo players with a place to discuss their likes and dislikes about the popular operators as well as any other topics of interest. This addition is expected to attract even more bingo players to the site, continuing its growth.

The Gaming Alerts Industry News section is now featured in Google News UK, significantly expanding its overall reach. The site provides only the best online gambling news and continues to attract new readers every day.

eCOGRA Advocate A Panellist At Conference

ex Rees, the Fair Gaming Advocate at the London-based player protection and standards body eCOGRA, will be one of a panel of experts discussing Responsible Gambling at the Asian Gambling Briefing starting in Singapore on the 21st October.
 
Organiser Beacon Events has invited Ms. Rees, who routinely mediates hundreds of player disputes every year, to join the high-powered panel, which will be moderated by Panos Makridis, Responsible Gaming & Compliance Manager for Galaxy Entertainment Group.
 
Other members of the panel will be Macau-based Francisco Gaivao, Senior Legal Counsel, Melco Crown Gaming and Prof Hao Zhidong, Associate Professor & Head of Department of Sociology, University of Macau.
 
The discussion will embrace the importance of CSR and Responsible Gambling programs and their relevance to social responsibility; how Asia compares with other regions in the implementation of responsible gambling policies; the relationship between CSR and public policy and the appropriate level of government involvement; best practice for exclusion problems and how to increase operator accountability.
 
Rees established eCOGRA’s Responsible Gambling Requirements, and continues to ensure they are correctly implemented across well over 100 leading online gambling websites and mobile operations. She has organised and hosted various underage and responsible gambling training programs for eCOGRA certified operators, and has also been responsible for coordinating and motivating industry efforts which ultimately resulted in the International Responsible Gambling Code, adopted by industry trade organisations RGA, EGBA, IGC and leading online gambling jurisdictions.
 
She joined eCOGRA in 2003 with over 15 years of management and customer relations experience in both land-based and online gaming businesses.
 
Her experience includes managing customer relations for software developer LiveBet Online, where she was the primary point of contact for clients regarding development and operational issues. Responsibilities included interpreting client needs to develop a software solution and overseeing the installation, testing and training of the platform.
 
Prior to that, Rees managed a staff of 40 administrative and call centre employees for SuperBet, which ultimately became South Africa’s first online gambling operation. While there, she managed customer dispute resolution, established a customer care protocol and oversaw its implementation. Rees also assisted in wagering software development and testing for SuperBet and served as a liaison to the S.A. Gambling Board regarding compliance issues.

Rolling the Dice with McCain and Online Gambling

With the November election right around the corner, Poker Player Newspaper asked journalist Amy Calistri to look at Barack Obama’s and John McCain’s candidacy from the perspective of their positions on gambling and poker. Amy’s piece on Senator McCain follows; her piece on Senator Obama will appear next issue]

 

“This is a very, very superstitious game,” he said. When his turn came to throw the dice, he picked them up and blew on them first. He had placed chips on the number 5, so (envisioning a combination of 2 and 3) he called, “Michael Jordan! Michael Jordan!”

 

In her May 2005 article in The New Yorker, Connie Bruck described John McCain’s love affair with craps, including a friend’s account of how he and McCain used to shoot craps for 14 hours straight in Vegas. When Republican Presidential Candidate John McCain puts his chips on the table, it is clear he likes to bet with the roller. But it is far less clear whether McCain will take the gambler’s side when it comes to online gambling.

 

With the financial sector teetering on collapse, rising unemployment, and military campaigns playing out on two fronts, it is understandable why neither presidential hopeful is featuring gambling as a defining issue of their candidacy. While understandable, it is also frustrating for the many internet poker players who define themselves as “one issue voters,” leaving them to search high and low for clues as to the candidates’ positions on internet gambling. And it may be especially challenging for those trying to pin down McCain, whose gambling policy clues cover the full spectrum, from pro to con.

 

The biggest McCain related internet gambling alarm bell is the 2008 Republican Platform, which is supposed to represent the cornerstone of the party’s agenda. It states, “Millions of Americans suffer from problem or pathological gambling that can destroy families. We support the law prohibiting gambling over the Internet.” The Poker Players Alliance (PPA) worked hard to convince the Republican Party to exclude such language, but to no avail. And just to prove the old adage that politics makes for strange bedfellows, former Senator Alfonse D’Amato and paid lobbyist for the PPA, currently endorses McCain.

 

PPA Executive Director John Pappas stated that McCain “does not have a specific position on Internet poker, but does appear to have been influenced by his fellow Arizona Senator Jon Kyl, who is a vigorous opponent of our rights. McCain, however, has always been willing to consider both sides of an issue and may simply need to know how strongly PPA members feel.” In what appears to be some rationalization for why their lobbyist would support a candidate whose party has a strong anti-internet gambling agenda, Pappas offered, “I can only hope that, should McCain be elected, we’d have some insight into his thought process. If you have someone that’s on the fence on your issue, then what better way to educate him than to surround him with people that understand the benefits of regulation, like D’Amato? We have a great open door to be able to engage him on the issue.”

 

Rationalization aside, Pappas’ assessment of McCain’s personal position on internet gambling appears to be correct; McCain doesn’t have one. In a recent interview, Las Vegas Review Journal’s reporter Erin Neff specifically asked McCain about his views on internet gambling. After a few false starts, and at one point trying to deflect the question by stating that internet gambling was Kyl’s issue, McCain finally answered: “Let me get back to you on it. I haven’t thought about the issue.” I suspect Neff is still waiting.

 

Actions always speak louder than words, but on this front McCain’s positions are also a bit murky. On one hand, McCain was a key architect of the Indian Gaming Regulatory Act passed in 1988. McCain obviously believes that some forms of gambling can be safely regulated. But he clearly doesn’t feel that way about all forms of gambling.

 

In 2001, McCain introduced the Amateur Sports Integrity Act (S.718), a bill that would make it unlawful to wager on Olympic, college, and high school sports. In its final form the bill also included an amendment referred to as the “Unlawful Internet Gambling Funding Prohibition Act,” which read just like today’s UIGEA. It also proposed to cut off federal funding to any institution of higher learning that didn’t effectively monitor students’ funding of online gaming accounts. Granted, the anti-internet gambling amendments were not drafted by McCain, but it does indicate that at one point in his career, he was willing to throw internet gambling under the bus. Ultimately, the bill never made it to the floor.

 

There are no sure bets in politics or gambling. And looking to either presidential candidate to restore sanity to the legal conundrum of internet gambling in the U.S. may be a long shot. But at this point it time, it’s hard to even set the line on John McCain.

21Ventures seeds Israeli anti-cheating software for online games maker Cognisafe

21Ventures, a U.S. based venture capital firm, announced today an undisclosed seed investment in CogniSafe, an Israeli company providing real-time anti-cheat software solution for online games.

Cheating in online games is effectively a problem which causes significant losses to gaming companies and harms the players ability to enjoy the challenge and adventure of a cheat-free game environment.

The cheating problem in online games causes game providers to remove tens of thousands of paying players every month, due to suspected cheating. The removal is usually done following a complaint from other players, or after a post mortem analysis of player’s actions. In addition a significant number of legitimate players abandon some game titles, and cease paying, when they feel they have been cheated.

CogniSafe’s solution enables online game providers to detect, in real time, any deviation from proper gaming procedures by the online players, and remove cheaters from participation in the game, thus makes cheating attempts futile and enables other players to continue and enjoy a cheat-free gaming experience.

Online Gambling Summit to Take Place in Kentucky Next Week

The Internet Commerce Association (ICA), a non-profit trade organization representing domain-name investors and developers and the direct search industry, is responding to Kentucky’s attempt to seize 141 domain names of online gambling companies by holding what it’s calling an emergency summit.

Hosted by the Bluegrass Institute, which calls itself “an independent research and educational institution offering free-market solutions to Kentucky’s most pressing problems,” the summit takes place 1 p.m. Oct. 6 at the Capital Plaza Hotel-Frankfort in Kentucky’s capital.

Scheduled to appear on the panel are representatives from the Poker Players Alliance, Interactive Media Entertainment & Gaming Association, and the Americans for Tax Reform organization, as well as ICA executive director Michael Collins.

The summit takes place a day before a Kentucky judge is set to decide if the Commonwealth has the right to seize the domain names used to gamble and play poker by using a law that allows Kentucky to seize gambling devices. The Commonwealth is arguing that URLs should be considered gambling devices in this case.

The summit will focus on why the ICA believes the seizure is wrong and how it violates the commerce clause of the U.S. Constitution. People interested in attending the summit should visit www.internetcommerce.org.

Bingo Bill No Threat Say California Gaming Tribes

18th Sept 2008 – The California Tribal Business Alliance has hit back against the California Charity Bingo Association and its call on Governor Arnold Schwarzenegger to reject an upcoming online bingo bill, accusing the association of raising phoney issues on behalf of a slot machine manufacturer.

As reported here yesterday, the California Charity Bingo Association has urged the Governor to reject the remote caller bingo bill on grounds that it would be damaging to charities and the state lottery, as well as opening the way for tribal gaming to move online.

The Tribal Alliance accuses the Charity Bingo Association of being nothing more than a front for slot machine manufacturer Video Gaming Technology, and alleges that a number of charities have installed illegal gaming machines in their parlours at the behest of the machine manufacturers.

“Essentially, SB 1369 could not permit internet wagering because the use of internet technology is limited strictly to the broadcast of a live bingo game to remote locations. Players must be present in the bingo hall, and no wagers or prize awards are allowed via the internet.

“Internet wagering is also prohibited under federal law, so neither charity bingo operators nor Indian tribes may attempt to offer it,” said the Tribal Alliance.

The alliance also defended a clause in the bill which states that charities may not use electronic bingo or slot machines. “The purpose of this clarification is to avoid a dispute with tribes that are paying hundreds of millions of dollars to the state in return for the exclusive right to operate certain types of gaming,” it said.

As the US economy continues to weaken, competition for Californian’s gambling dollars only looks set to intensify between the state lottery, charities and gaming tribes.

The ultimate decision on the bill however will most likely have nothing to do with gaming or charities. Governor Schwarzenegger has vowed to veto a whole raft of bills, including the bingo bill, in retaliation for the legislature’s threat to override a veto he intends to use on the state budget.

Castle Technologies Inc. to Prepare White Paper About $48 Billion Online Gaming Industry

Castle Technologies, Inc. (Pink Sheets:CSTL) is pleased to announce that the Company will prepare a White Paper to provide an informative insight to the growing number of global online poker players and the business as a whole. The White Paper is expected to be completed within the next three weeks and customers and investors interested in receiving a copy can go to the company’s Web site, www.castletechnologiesinc.com, and fill out a request form.
Several members of Castle Technologies, Inc. will contribute to the White Paper in order to provide factual information on their new software currently being Alpha tested. Analysts project the online gaming industry will be $48 billion by 2010 and exceed $125 billion by 2015. The White Paper will also discuss the poker games being developed by the Company: Texas Hold’em, Omaha, and 7-Card Stud as well as the patent pending progressive jackpot features and new tournament structures for the online gambling software.
“We’re writing this paper to present the information about our online poker software to our customers and investors and to demonstrate how our patent pending progressive jackpot feature makes the game more entertaining for the players. We want to inform them about the fundamentals of our online poker software and the online poker industry. The White Paper will also define how our software relates to our customers’ satisfaction in participating in these games, and increased revenues for the Company and our investors,” stated David Comeau, President and CEO of Castle Technologies, Inc.
About Castle Technologies, Inc.:
Castle Technologies is a software development and servicing company specializing in providing innovative Web based gaming to the growing international online population. Its market focus is the multi-player poker enthusiast that has continued to spread internationally and grow at a phenomenal rate. The Company will license these products and services to offshore companies, and receive royalties based on the usage of the systems and support in place.
Safe Harbor Act: Statements regarding financial matters in this press release other than historical facts are “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company’s future expectations, including future revenues and earnings, technology efficacy and all other forward-looking statements be subject to the safe harbors created thereby. The Company is a development stage company who continues to be dependent upon outside capital to sustain its existence. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company’s actual results may differ materially from expected results.

John McCain’s Gambling Problem: Team May Have Ties to Gambling Industry

As the online gambling industry fights to gain its legal stature in the United States through a challenge waged by the The Interactive Media Entertainment & Gaming Association, the New York Times has hit the stands with a story that McCain may have ties to the land-based casino sector.

A lifelong gambler, Mr. McCain takes risks, both on and off the craps table, according to the New York Times. He was throwing dice one night not long after his failed 2000 presidential bid, in which he was skewered by the Republican Party’s evangelical base, opponents of gambling. Mr. McCain was betting at a casino he oversaw as a member of the Senate Indian Affairs Committee, and he was doing so with the lobbyist who represents that casino, according to three associates of Mr. McCain – that would be Foxwoods Casino in Connecticut.

The visit had been arranged by the lobbyist, Scott Reed, who works for the Mashantucket Pequot, a tribe that has contributed heavily to Mr. McCain’s campaigns and built Foxwoods into the world’s second-largest casino. Joining them was Rick Davis, Mr. McCain’s current campaign manager. Their night of good fortune epitomized not just Mr. McCain’s affection for gambling, but also the close relationship he has built with the gambling industry and its lobbyists during his 25-year career in Congress.

As a two-time chairman of the Indian Affairs Committee, Mr. McCain has done more than any other member of Congress to shape the laws governing America’s casinos, helping to transform the once-sleepy Indian gambling business into a $26-billion-a-year behemoth with 423 casinos across the country. He has won praise as a champion of economic development and self-governance on reservations.

“One of the founding fathers of Indian gaming” is what Steven Light, a University of North Dakota professor and a leading Indian gambling expert, called Mr. McCain.

As factions of the ferociously competitive gambling industry have vied for an edge, they have found it advantageous to cultivate a relationship with Mr. McCain or hire someone who has one, according to an examination based on more than 70 interviews and thousands of pages of documents.

The Indian casinos have not exactly embraced the online gambling sector, however, though McCain has gone on record as saying that prohibition of Internet gambling and online poker is not a priority of his.

“It is really Sen. Jon Kyl’s deal,” McCain told a Las Vegas reporter when pressed about the subject. Arizona Republican Senator Jon Kyl was a co-author of recently past Internet gambling prohibition – the Unlawful Internet Gaming Enforcement Act – and has been among the industry’s most aggressive foes over the past decade. Strangely, Kyl has not taken center stage on the issue in recent months at a time when bills have been presented in the House by Democratic Congressman Barney Frank. Fellow Republican Spencer Bacchus has taken the lead in his place.

But McCain insists online gambling prohibition is far from his mind.

“I haven’t thought about the issue,” McCain said when pressed further by the Vegas-based reporter.

The Indian casinos, like Las Vegas, have been casting a keen eye on the multi billion dollar Internet gambling sector. Vegas has profited from the industry indirectly via the World Series of Poker, which draws throngs of players to Sin City during its hottest months of summer. The online poker rooms have been credited for building the WSOP.

And the Indians have not been left out of the equation. Kahnawake, a tribe outside of Quebec, Canada, is among the most prominent enterprises involved in online gambling today, overseeing such businesses as BodogLife.com and UltimateBet Poker.

The New York Times questions McCain’s classification as a “maverick” based on his relationship with the Indian casinos and those lobbyists who represent them.

Mr. McCain portrays himself as a Washington maverick unswayed by special interests, referring recently to lobbyists as “birds of prey.” Yet in his current campaign, more than 40 fund-raisers and top advisers have lobbied or worked for an array of gambling interests – including tribal and Las Vegas casinos, lottery companies and online poker purveyors.

Mr. McCain declined to be interviewed by the New York Times. In written answers to questions, his campaign staff said he was “justifiably proud” of his record on regulating Indian gambling. “Senator McCain has taken positions on policy issues because he believed they are in the public interest,” the campaign said.

Just two weeks ago, Democratic running mate Joe Biden announced that his son would no longer engage in lobbying efforts. Biden’s son, Hunter, worked on lobbying efforts for the online poker sector.

Federal lobbying records show that Hunter Biden’s firm was hired in June by lawyers for J. Russell DeLeon and his wife, Ruth Parasol, billionaire expatriates who founded a Web site called PartyPoker, according to a New York Times report. Their company, PartyGaming P.L.C., which later went public in London and was the single largest IPO on the London Stock Exchange in 2004, stopped doing business in the United States after President Bush signed a bill into law in 2006 aimed at curbing online gambling.

Wyeth Wiedeman, a lobbyist hired by Mr. DeLeon and Ms. Parasol, said Mr. Biden helped put together a lobbying campaign to persuade Congress to pass a law that would clarify the question about whether online gambling was legal prior to 2006. Mr. Wiedeman said the Justice Department has been examining the couple and others involved with the PartyPoker site.

PartyPoker was forced out of the US market thanks to Jon Kyl’s co-authored UIGEA. At the time, 80 percent of Party’s customers were originating from the US. And in an ironic twist, one time Iowa Republican Congressman and another co-author of the Unlawful Internet Gaming Enforcement Act, Jim Leach, is now vocally endorsing Democratic Senator Barack Obama for President.

Kentucky Online Gambling Domain Hearing Reconvenes October 7

The Commonwealth of Kentucky will be in court again October 7 to face off against the online gambling industry.

Kentucky received court permission to seize 141 gambling Web sites’ domain names as it tries to put them out of business there. Gov. Steve Beshear (D) said at a press conference that the gambling-friendly state is taking “unprecedented action” against sites that “siphon off money from regulated and legal games,” such as the state lottery and thoroughbred racing. Kentucky has lost “tens of millions” to unlicensed gambling, he said.

But the online gambling industry was well represented in numbers and quality of its legal counsel.

The Interactive Media Entertainment & Gaming Association (iMEGA.org) has been granted standing and issued a Motion to Dismiss.

“I have a good feeling about our Motion,” expressed Edward Leyden, President of iMEGA, who was on hand during Friday‘s postponed hearing. “County Judge Thomas Wingate is a very straight forward common sense judge and a thoughtful guy so we are in good hands.”

The commonwealth has asserted their case under a statute that makes it illegal from running gambling operations within the state that makes mention of “gambling devices” but does not implicitly discuss gambling-related domains.

The prosecution was also adamant in hectoring any lawyer to identify their clients. With iMEGA’s standing in the Federal Court, they will not be required to do so. iMEGA is recognized under the Constitution and under Washington Apple Advertisers vs. Hunt as a trade organization that does not require it to name the identities of individual members or companies.

Several attorneys for various registrars, including the registrar for GoldenCasino.com, were present. GoldenCasino.com’s domain name was among a handful seized by the commonwealth. The prosecution also wanted guarantees that clients (domain name holders) would not switch to new URL’s prior to October 7. GoldenCasino.com has since switched over to NewGoldenCasino.com. Other online gambling websites have told Gambling911.com that they are already in the process of reserving new domains. None of the attorneys present were willing to guarantee such a thing.

“Registrars are caught in the middle here,” Leyden points out. “On one hand they are concerned that the commonwealth will come after them. On the other hand they are concerned that the contract party will come after them seeking significant damages.”

Also on hand were attorneys for the Poker Players Alliance and the Internet Gaming Counsel.

Kentucky state news organizations were also covering Friday’s hearing.

“The common sense people of Kentucky who respect their rights will be following this case closely,” Leyden told one of the local ABC news affiliates.