In Kentucky, Governor Steve Beshear is trying to rid the state of internet gambling once and for all. His solution: seize 141 domains associated with internet gambling sites, including the URLs associated with nearly every major online poker room still operating in the United States. The Kahnawake Gaming Commission (KGC), the regulatory agency for many affected companies, recently authored a letter to Beshear, according to an article posted by iGamingBusiness.
Internet gambling domains that would be forfeited to the Commonwealth of Kentucky include UltimateBet.com, PokerStars.com, AbsolutePoker.com, DoylesRoom.com, BodogLife.com, FullTiltPoker.com, and CakePoker.com. Although it’s unclear how the measure will be implemented, online poker rooms have already sought contingency plans, including Full Tilt Poker, which purchased the rights to FullTilt.com. Judge Thomas Wingate is expected to announce his decision in the case that he described as “complex” on Wednesday, October 15th. The move will have far-reaching implications regardless of how Judge Wingate rules.
The letter written to Beshear stated, “We are compelled to draw to your attention that your actions will also adversely affect the members of our community and that is not acceptable.” The statement added, “It’s not the first time that a government has tried to prevent us from conducting business and it won’t be the last. But, rest assured, we will always protect our jurisdiction and the integrity of the Kahnawake Gaming Commission.” Many of the KGC’s licensees suffered from the implementation of the Unlawful Internet Gambling Enforcement Act, which was attached to the SAFE Port Act in the United States back in 2006 and passed on the last day of the Congressional session that year.
Among the organizations arguing on behalf of the internet gambling industry are the Interactive Gaming Council (IGC), Interactive Media Entertainment and Gaming Association (iMEGA), and the Poker Players Alliance (PPA). The Bluegrass Institute hosted an emergency meeting on Monday to discuss Beshear’s actions. On Tuesday of last week, lawyers in the case argued for several hours in front of Judge Wingate. The State argued that internet gambling domain names are able to be seized under Kentucky law as “gambling devices.” The industry argued that the State had no authority to do so. Ed Leyden, the President of iMEGA, argued that Beshear’s actions violated the Commerce Clause of the United States Constitution: “Beshear is taking care of the home folks. I argued that it’s discrimination. In terms of its legal consequences, what it does is violate the Commerce Clause.”
Leyden alluded to the horse racing industry and state lottery, both of which are being protected under Beshear’s actions. For example, the state lottery runs a second chance drawing online for scratch-off tickets. The Churchill Downs Company, which owns and operates the famous racetrack of the same name, also owns TwinSpires.com. The website allows online wagering on horse racing, but is not among the 141 domains targeted by Beshear. TwinSpires.com is licensed in Oregon and recently completed a promotion with poker pros Robert Williamson III and Ultimate Bet spokesman Phil Hellmuth.
On last Tuesday’s hearing, Leyden commented, “I thought everyone there cooperated and we put on a compelling case. You can never tell, but we’ll see what happens. It really does open up the door to some terrible things if the seizure order holds up.”