The long-awaiting internet gambling ruling in Kentucky was passed down on Thursday. The case pits the owners of 141 internet gambling domain names against the Justice and Public Safety Cabinet of the Commonwealth of Kentucky. Around 4:30pm ET on Thursday, Judge Thomas Wingate issued a ruling denying motions filed by the Interactive Gaming Council (IGC) and Interactive Media Entertainment and Gaming Association (iMEGA) to dismiss the case. Instead, a final forfeiture hearing was scheduled for November 17th at 10:00am.
The conclusion of the ruling read, “We note that Opposing Groups and Lawyers argue any judicial interference of the Internet will create havoc. The doomsday argument does not ruffle the Court. The Internet, with all its benefits and advantages to modern day commerce and life, is still not above the law, whether on an international or municipal level.” The comment comes in response to groups that argued that Governor Steve Beshear’s actions of seizing the 141 domain names in questioned crippled the freedom of the internet. In a press release from September, iMEGA stated, “Should the actions of Kentucky’s chief executive stand, the harm to Internet freedom would be immense. What a powerful weapon would be placed in the hands of government: to arbitrarily seize politically, religiously, or culturally-based Internet domains that may run contrary to the views of those in power.”
The ruling by Judge Wingate, while keeping the seizure order in effect, states that it is amended such that “any of the Defendants 141 Domain Names, their respective registrants or their agent, or any other person with an interest or claim who… installs the applicable software or device… which has the capability to block and deny access to their on-line gambling sites… from any users or consumers within the territorial boundaries of the Commonwealth… shall be relieved of the effects of the Seizure Order and from any further proceedings in the instant civil forfeiture action.”
That language makes it clear that if the proper safeguards are put in place by any of the 141 domains in question to restrict access by Kentucky residents, then the Seizure Order against that site will be withdrawn. Domain names in question include those belonging to online poker rooms like Absolute Poker, Bodog, Ultimate Bet, Full Tilt Poker, Cake Poker, Doyle’s Room, PokerStars, and the Microgaming Network. Also on the list are websites such as River Belle, Sportsbook.com, and AllSlots.com. Targets of the Governor’s actions also include casino, BINGO, and sportsbook websites.
Bluegrass Institute Public Policy and Communications Director Jim Waters was outraged following the decision passed down by Judge Wingate to allow the case to continue. He told Poker News Daily, “It is hypocritical for a Governor who ran on a platform of expanded gambling in Kentucky to shut down internet gambling sites and do so in the face of competition. It’s hogwash. Governor Beshear is a high-tech hijacker and the Judge is his accomplice.” Beshear is allegedly trying to protect horse racing and the Kentucky Lottery, both of which flourish in the state. The Lottery generated $744 million during the Fiscal Year 2007.
Rather than prohibit internet gambling within its borders, groups like the Safe and Secure Internet Gambling Initiative (SSIGI) seek to encourage its regulation. The SSIGI commented to Poker News Daily, “We encourage Governor Beshear to support the regulation of Internet gambling as a more effective approach to protect consumers and capture millions of dollars to fund critical government programs in Kentucky.”
The statement released by Judge Wingate also dismissed the stance taken by the Poker Players Alliance (PPA) that online poker is a game of skill and therefore not illegal under Kentucky state law. The verdict claims, “In the end, no matter how skillful or cunning the player, who wins and who loses is determined by the hands the players hold.” The PPA, in a statement released late Thursday, retorted, “We strongly disagree with Judge Wingate’s ruling that poker is not a game of skill. As demonstrated in the amicus brief we filed, skill plays an essential role in being a successful poker player.”
The PPA expects an appeal, although its timing is currently unclear. A final forfeiture hearing is scheduled for Monday, November 17th at 10:00am ET.