To say that it has been an eventful week for the internet gambling and online poker industries would be an enormous understatement. A three judge Court of Appeals panel overturned a lower court decision on Tuesday, preserving 141 of the world’s largest internet gambling domain names for the foreseeable future. On Wednesday, the Commonwealth of Kentucky appealed to its Supreme Court. Poker News Daily took the pulse of the online poker industry to gauge its reaction to the recent events.
The Safe and Secure Internet Gambling Initiative (SSIGI) has been at the forefront of the fight for the industry on both Capitol Hill and in the Commonwealth of Kentucky. The SSIGI has focused its efforts on the Unlawful Internet Gambling Enforcement Act (UIGEA) and is endorsed by groups such as eCOGRA and the Remote Gambling Association. On this week’s victory in Kentucky, SSIGI spokesperson Michael Waxman told Poker News Daily, “We are pleased that the Court has decided not to interfere with the freedom of the internet. Now, we need to bring change to our country by allowing Americans the freedom to gamble online in an environment where they are protected.” The SSIGI and the rest of the industry now await word on whether the Kentucky Supreme Court will hear the case involving the seizure and potential forfeiture of 141 of its largest domain names, including those belonging to PokerStars and Full Tilt Poker.
The proceedings in the Court of Appeals, which occurred in Louisville, have been followed by online poker rooms around the world, as the domain names of many of them were singled out in the case. Paul Leggett, Chief Operating Officer of Tokwiro Enterprises, which owns and operates Ultimate Bet and Absolute Poker, told Poker News Daily what his reaction was to Tuesday’s successful Court of Appeals ruling: “We really hope that this case brings more serious attention to the complete legalization of online poker in the United States. Online poker is enjoyed recreationally by so many people, and taxing it will only benefit states financially and provide a better experience and security to their players.”
The Interactive Media Entertainment and Gaming Association (iMEGA), whose lawyers have argued in front of the Kentucky Court of Appeals and Circuit Court, learned with the rest of the industry that the Commonwealth would appeal the case to its Supreme Court. Joe Brennan, Chairman of iMEGA, told Poker News Daily, “We’re not surprised that Governor Beshear and Secretary J. Michael Brown are appealing our win in the Kentucky Court of Appeals. They’ve put a lot of political capital into this and they’ve called us just about every name in the book. Given that, it’s likely they feel they can’t back down now and let the Court of Appeals decision stand, regardless.”
Brennan also described how the Commonwealth’s lawyers are allegedly being paid. He explained to Poker News Daily, “The Commonwealth’s attorneys have a vested interest in taking this to the next level, too. They’ve reported spent millions of their own money in preparing this suit and ones like it in other states. Without a win in Kentucky, where they took this suit on a contingency basis, it is likely those other suits won’t get off the ground, and they’ll have lost their own big bet.” Taking a case on contingency typically means that lawyers are only paid in the case of a successful ruling. Then, a portion of damages and other monetary gains are given as compensation for their work.
Other organizations in the industry have also weighed in after Tuesday’s successful ruling. Jeremiah Johnston, the President of the Internet Commerce Association (ICA) told the Associated Press that the issue of whether states can seize international property in cyberspace remains unsettled despite the Court of Appeals’ decision: “That wild card is still out there. In the end, it’s a positive ruling, so we’ll take it.” On the organization’s website, Johnston added, “The Concurring Opinion also agreed with the ICA’s point that the court lacked authority to proceed in rem against a domain name. This detail, in the long term, may turn out [to be] the more important result for ICA members.” Sponsors of the ICA include DigiMedia, Sedo, and Domainer’s Magazine.
There has been no timetable given as to when the Kentucky Supreme Court will announce whether it will take on the case. Stay tuned to Poker News Daily for the latest reactions to the Kentucky internet gambling ruling and appeal.
The idea that any offshore online gambling entity would even exist if it was fully legal in the US is HILARIOUS.
The US’ position has enabled these places to make all the money they have.
think anyone would ever play at crooked as hell UB or Absolute if Harrahs was offering games?
Same Harrahs who own the WSOP and easily could wipe out every offshore room in a day,
despite the entrenched gravy train of rakes and shills.