Poker players and those involved in the online poker industry were absolutely flabbergasted this morning when browsing the online poker news headlines, their email boxes, and poker forums, they found that a court judge in Kentucky, USA, has ordered the seizure of 141 poker and gambling domains, to be transferred to ownership of the plaintiff – the Commonwealth of Kentucky. Among the 141 online gambling domains to be seized are some of the biggest players in the industry – PokerStars.com, FullTiltPoker.com, DoylesRoom.com, AbsolutePoker.com, Bodoglife.com, CakePoker.com and even the leading online gambling software developer, Microgaming.com.
I cannot fathom how the Governor of Kentucky, Steve Beshear – who instigated the whole thing – got the idea that he can take control of domain names belonging to small companies outside of the US, but according to the Franklin Circuit Court of the Commonwealth of Kentucky, he can.
Here’s what happened…
Secretary of Justice Michael Brown brought the civil action before the Franklin Circuit Court, on behalf of the Commonwealth of Kentucky, calling for the forfeiture and seizure of 141 online gambling domains that he demonstrates to be promoting and/or providing illegal gambling services within the state of Kentucky.
A hearing was held on September 18th where the court found in favor of the plaintiff, stating probable cause existed to seize the domains in questions as they are believed to be in connection with facilitating illegal gambling within the Commonwealth of Kentucky.
The end result is that the registrants of each domain have been ordered by the judge to transfer ownership to the plaintiff’s account. Electronic notifications were sent out to the registrants of each domain, detailing the order, according to the legal procedures set forth by ICANN.
Thus far, it has only been reported that two online gambling domains – luckypyramidcasino.com and highrollerslounge.com – have actually been seized. Both companies domain names were registered with the ENOM registrar service, based in the US, thereby allowing the seizure of the domain names.
None of the major online gambling domains mentioned earlier in this article – PokerStars.com, FullTiltPoker.com, etc. – are believed to be registered with US-based companies, therefore it is not yet unclear whether the seizure of these domains would actually be possible.
Why Kentucky?
We can think of one very good reason the governor of Kentucky would target online gambling sites, and especially online sportsbooks – Kentucky is home to major horse racing events like the Kentucky Derby. If citizens of Kentucky place their horse racing bets online, Kentucky will receive no revenue from these wagers. Instead, let’s oust the competition by snatching the foundation out from beneath their feet.
Kentucky Governor Steve Bashear, who’s always supported pro-gambling laws, lashed out at the online gambling industry, basically rehashing the UIGEA word for word. He spoke of the dangers of underage and problem gambling, as well as the industry’s alleged use for money laundering.
“Unlicensed, unregulated, illegal internet gambling poses a tremendous threat to the citizens of the Commonwealth because of its ease, availability and anonymity,†claimed Bashear.
PPA’s John Pappas Responds…
Poker Players Alliance executive director, John Pappas, berated the court’s decision with the following statement:
“Many of Governor Beshear’s arguments – that online poker is illegal, unregulated and without a mechanism to capture tax revenue – are false. Online poker is not illegal under Kentucky law, is regulated in its home jurisdiction and the Commonwealth of Kentucky chose not to license and regulate poker websites.
“If the Governor truly wants to implement tighter regulations, taxation mechanisms and consumer protections on Internet gambling, the PPA suggests he publicly support federal legislation by U.S. House of Representatives Financial Services Chairman Barney Frank, H.R. 2460, which would achieve those goals.
“Poker is a game of skill, a true American pastime and has a proud heritage in Kentucky. Simply because the game has evolved into the 21st Century, it should not be treated as suspect activity. Forcefully and secretly seizing control of websites that offer online poker games is not a sound public policy or a sound legal solution.”
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