First Kentucky Governor issued an order to seize 141 domain names of online gaming organizations for violation of Kentucky law on gambling.

The online gaming companies went to court and received time from Franklin County Circuit Judge Thomas Wingate for preparation of their case.

The case was heard last week. The judge will mull over the arguments for a week and then pass his order. This order will have far reaching consequences for the future of online gaming in the United States. Hence it is in the interest of all associated with online gaming to know what transpired in Judge Wingate’s court during the hearing. 

The battery of lawyers representing the online gaming organizations put forward many compelling arguments. These are as follows. “Internet domains” are not gambling devices. Devices necessarily have to be mechanical in nature and a set of typed words cannot constitute a device. It may be recalled that under Kentucky law illegal gambling devices can be seized by the State and this is the basis of the State’s argument. Kentucky law does not forbid online gambling. Kentucky, nor any other state, has the power to seize an Internet domain name. Internet domain names function across the world and therefore subject to Federal and not State Law.

In any event the domain names do not exist in Kentucky and therefore cannot be seized by the State. Kentucky Governor has admitted that his seizure order was given in order to protect the interests of the states horse racing industry. It also protects the states land casino industry. Therefore his order violates the U.S. Commerce Clause, which forbids states from regulating commerce especially with the intent to prevent competition. Some of the domain names pertain to online poker rooms. The lawyers argued that poker is a game of skill and therefore does not come under the purview of gambling laws. The final argument was that the seizure of domain names is a violation of free speech guaranteed under the First Amendment of the U.S. Constitution. 

Judge Wingate’s decision will be delivered on October 15. Till then continuance has been granted to the US online casinos and US poker sites. There is now speculation going on as to what may happen if the judge rules in favor of the state. Undoubtedly the online gaming organizations would appeal against that decision. But in the interim the Governor’s order would come into effect. However only a few of the online gaming organizations in the list of 141 are registered in the United States. They would perhaps have to comply. There are rumors that the others have come to a tacit agreement that they would ignore the seizure order and carry on regardless. 

Several organizations connected with the online gaming industry have thrown in their weight in support of the online gaming organizations. The Poker Players Alliance had already filed an amicus brief in court. The Kahnawake Gaming Commission has sent a scathing communication to the Kentucky Governor stating, “This is a perfect example of someone who knows nothing about the effects of their actions. … But, rest assured, we will always protect our jurisdiction and the integrity of the Kahnawake Gaming Commission.”