In January, the Kentucky Court of Appeals ruled by a 2:1 margin that the Kentucky Justice and Public Safety Cabinet did not have jurisdiction to seize 141 internet gambling domain names. In October, the Kentucky Supreme Court will hear the case.
The Cabinet appealed immediately following the Court of Appeals decision, which kicked off the 2009 calendar year in the online poker world. Now, attorneys for the Interactive Media Entertainment and Gaming Association (iMEGA) and Commonwealth of Kentucky will take to the floor of the state’s Supreme Court on Thursday, October 22nd at 11:00am local time. On the 10-month turnaround, iMEGA Chairman Joe Brennan told Poker News Daily, “My understanding is that the October 22nd date is fairly expeditious when it comes to the Kentucky Supreme Court. Usually, appellate courts don’t hear things that quickly when there’s nothing driving it. The fact that the court is going to hear oral arguments so soon confirms that it has an interest in the subject matter.”
A bevy of organizations have submitted documents supporting iMEGA’s challenge against the Commonwealth of Kentucky, including the Poker Players Alliance (PPA), eBay, and the American Civil Liberties Union (ACLU). iMEGA is represented by Jon Fleischaker of Dinsmore and Shohl, which is based in Louisville, Kentucky. Brennan forecasted, “We saw the briefings that the Governor’s attorneys brought to the table and they don’t have a lot they can hang their heads on other than making a claim for a Federal ban on internet gambling that doesn’t exist. There’s no Federal law against gambling on the internet and no law in Kentucky. I’m pretty sure we’re going to beat them again.”
Last September, the Commonwealth seized the 141 internet gambling domain names in question, including those belonging to PokerStars, Full Tilt Poker, and Ultimate Bet, on the grounds that they constituted “gambling devices,” a term traditionally reserved for physical objects like dice and slot machines that you’d find in an illegal casino. In October, Judge Thomas Wingate upheld the Commonwealth’s actions, which were prompted by Governor Steve Beshear. iMEGA then sought the intervention of the Court of Appeals, which agreed with the trade association by a 2:1 vote in January.
The news comes on the heels of iMEGA falling short in its constitutional challenge of the Unlawful Internet Gambling Enforcement Act (UIGEA). A three-judge panel in the Third Circuit Court of Appeals disagreed with many of the organization’s basic arguments, but ruled that internet gambling may be legal in the U.S. dependent upon state law. On the UIGEA, the Court declared, “The Act itself does not make any gambling activity illegal. Whether the transaction… constitutes unlawful internet gambling turns on how the law of the state from which the bettor initiates the bet would treat that bet, i.e., if it is illegal under that state’s law, it constitutes ‘unlawful internet gambling’ under the Act.” IMEGA claims the decision could pave the way for legal internet gambling in 44 states.
iMEGA can appeal the Third Circuit’s ruling, although no decision has been made as to whether the organization will pursue that course of action. Brennan explained, “If we were to do something, it’d be applying to the Supreme Court or starting a new challenge against the UIGEA regulations. At this point, I wonder what the best use of our resources is. The Government managed to get the UIGEA upheld in a way that the states have a right to determine what kind of gambling is allowed within their borders.” The Third Circuit dismissed iMEGA’s claims that the UIGEA should be “void for vagueness” and that the 2006 law tramples on privacy rights, among other arguments.
Kentucky’s economy thrives on the presence of horse racing, whose premier event is the annual Kentucky Derby, held each May in Louisville. The parent company of Churchill Downs, the venue of the Derby, also owns and operates TwinSpires.com, which accepts real money wagers from Kentucky residents. Moreover, the state’s lottery offers an online second chance option.
Stay tuned to Poker News Daily for the latest from the Kentucky internet gambling case.
