This is a brief summary of the Kentucky domain seizures that are going on.

We will have an expert opinion on the future or predictions of what will happpen with this mess by I. Nelson Rose, Gambling Law professor shortly.

Late last week Judge Wingate upheld the decision of the Kentucky Governor of seizing the 141 domain names of Internet gambling companies as valid in law. Thus ended, at least for the time being, the three-week drama that had begun late in September. The Governor of Kentucky has obtained a court order to seize the domain names on grounds that they were illegal gambling devices. The 141 domain names went to court and obtained a continuance and also time to present their arguments. The arguments were heard and Judge Wingate said that he would mull over the arguments for a week and then pronounce his judgment.

In his judgment Judge Wingate demolished each and every argument put forward by the Internet gambling companies. He opined that a gambling device need not be something mechanical and therefore domain names could be gambling devices and were illegal in the state of Kentucky and hence could be seized.  In the future players from KY will have to play at Kentucky accepted poker sites. His view was that since the domain names provided services to Kentucky citizens they came under the state’s jurisdiction. The most far-reaching part of Judge Wingate’s decision was that none of the domain owners were properly represented. The Poker Players Association (PPA) had filed a brief only as a friend of the court and hence could not be considered to represent the domain names. Other industry organizations that appeared as representatives of the domain names also were not entertained. This despite the fact that iMEGA had won the right to represent online gaming clients in a court decision earlier this year. Even the domain names that had sent direct representatives were not accepted because they had not disclosed the names of the owners. The argument that hurt the poker industry the most was Judge Wingate’s refusal to acknowledge poker as a game of skill, something that the PPA has been trying hard to establish. The judge said that it was not important that poker had elements of skill. The fact remained that poker had elements of chance, no matter how much or how little, and that established poker as a gambling game.

As expected the PPA was quick to react against the judgment in their characteristic manner by flooding the Governor’s office with letters and telephone calls. They said that this was blatant discrimination against Internet poker simply because it was played on the Internet. Rich Muny, Kentucky state director of the PPA, used very strong words when he said, “This is Internet censorship by judicial fiat, plain and simple.” He was sure that the Internet poker companies would appeal and was confident that the Kentucky Appellate Court would overturn Judge Wingate’s decision. He pledged the PPA’s support to the cause of Kentucky’s Internet poker players. John Pappas, the executive director of the PPA was also vocal in his opposition to the judgment. He challenged the wisdom of the Kentucky Governor in attempting to seize the domain names. He said that if the Governor had decided to regulate Internet poker instead of prohibiting it then the state of Kentucky would have earned millions of dollars in tax revenue. He hinted therefore the Governor was more concerned with protecting horse racing and land casinos rather than the welfare of the state and the rights of its citizens.