Kentucky Internet Gambling Decision May Be Rendered Thursday

Thursday marks a possible release date of a decision in the case involving the seizure of 141 internet gambling domain names in the Commonwealth of Kentucky. The URLs at risk belong to some of the industry’s marquee sites like PokerStars and Full Tilt Poker.

Whether a decision will ultimately be handed down is anyone’s guess. After a hiatus in February, the Kentucky Supreme Court returned to action in March with a full schedule. Decisions are rendered once per month and the case was not acted upon in January. If a verdict by the seven-member Kentucky Supreme Court panel is not doled out on March 18th, other possible dates in 2010 are April 22nd, May 20th, June 17th, August 26th, September 23rd, October 21st, November 18th, and December 16th.

The verdict could result in the forfeiture of some of the world’s largest online poker websites. Several, including Full Tilt Poker, have already made contingency plans. The industry’s second largest site purchased FullTilt.com. In the months since the September 2008 seizure, Ultimate Bet switched domain names entirely to UB.com as part of a re-branding. The legal squabble hinges on whether domain names are considered “gambling devices,” a term that traditionally refers to physical objects like slot machines and roulette wheels that you’d find in an underground casino.

Among the parties involved on the side of the internet gambling industry is the Interactive Media Entertainment and Gaming Association (iMEGA), whose Chairman, Joe Brennan, told Poker News Daily that his organization is anxiously awaiting Thursday’s case renderings: “We really hope it will be released this week so we can put this to rest and move on. We obviously feel that the law of the court is with us on this one and it’s a matter of when, not if, the Kentucky Supreme Court will rule in our favor.” Six of the seven Kentucky Supreme Court justices heard oral arguments in October.

In mid-December, attorneys for the Commonwealth of Kentucky filed a motion to add the names of individuals and companies associated with internet gambling to the complaint. The motion also called for a January hearing in front of Judge Thomas Wingate, but it was never acted on. Brennan noted that this has been the only interaction between the opposing parties: “The only conversation we had is when they were going to amend their original complaint. We asked them for the names and they told us no, as they did not recognize our standing despite the Court of Appeals ruling. They felt they had no duty or obligation to provide that to us. It turned out to be a bluff because the complaint was never amended.”

In January 2009, the Kentucky Court of Appeals ruled by a two-to-one margin that the Commonwealth did not have jurisdiction to act in the first place. State attorneys then appealed to the Kentucky Supreme Court. If iMEGA and company were to receive a less-than-positive ruling by the Kentucky Supreme Court, Brennan stated that the organization would appeal to the U.S. Supreme Court: “We would appeal to the U.S. Supreme Court if we lost. If the State loses in its Supreme Court and the case turns on state law, then they don’t have a chance in the Supreme Court. The Supreme Court may not even hear it.”

The Interactive Gaming Council (IGC) and attorneys for several of the sites at risk are also involved. The Poker Players Alliance (PPA), among other parties, submitted an amicus brief. Stay tuned to Poker News Daily for the latest on the Kentucky internet gambling case.