Last week in a monumental ruling, Kentucky District Judge Thomas Wingate refused to dismiss a case involving the seizure and potential forfeiture of 141 internet gambling domains. They include the websites of the largest online poker rooms in the industry that cater to U.S. customers, including Full Tilt Poker, Ultimate Bet, Cake Poker, and PokerStars. Late last week, Governor Steve Beshear, who initiated the seizure, issued his response to the ruling.
Beshear, in part to protect Kentucky’s horse racing industry and state lottery, ordered the 141 domain names in question to be seized. His actions have incited consternation from around the industry, including from industry groups like the Poker Players Alliance (PPA), Interactive Media Entertainment and Gaming Association (iMEGA), and Interactive Gaming Council (IGC). In addition, groups like the Bluegrass Institute have become involved in the issue because of the violations of freedom involved.
Nevertheless, Beshear was elated at the news that Judge Wingate had sided with him on the case. He commented in a press release available on Kentucky.gov, “I am very pleased with Judge Wingate’s ruling. The court validated our concern that there is illegal and unregulated Internet gambling in Kentucky. He has given these parties 30 days to effectively block any access to this illegal activity within the commonwealth of Kentucky or they may be forced to forfeit those domain names to the commonwealth.”
Judge Wingate’s ruling states that if internet gambling sites take action to block users in Kentucky from accessing the site using geo-targeting technologies, then they “shall be relieved from the effects of the Seizure Order and from any further proceedings in the instant civil forfeiture action.” The final forfeiture hearing is scheduled for Monday, November 21st at 10:00am ET.
Beshear reveals his reasons behind his order for seizure: “No one has been willing to step up and do anything about illegal Internet gambling until now. We must protect our people, especially our children, from this illegal and unregulated activity while also protecting our legal and regulated forms of gaming in Kentucky.” Beshear ran on a platform of expanding land-based casino gambling in the State.
Rich Muny, who is the State Director in Kentucky for the PPA, commented, “Judge Wingate’s order is a huge disappointment to the thousands of Kentuckians who play Internet poker. In essence, Governor Beshear and Judge Wingate are denying law-abiding citizens this form of recreation simply because it is enjoyed on the Internet. This is Internet censorship by judicial fiat, plain and simple.”
It’s a case that will set a significant precedent one way or the other. Due to the ruling last week, appeals are expected, although when they will be filed is currently unknown. The case has attracted worldwide attention, including from the Bluegrass Institute, a local organization aimed at preserving the freedoms set forth in the Constitution, and the Americans for Tax Reform (ATR). The latter national organization is led by Grover Norquist, who has been active on Capitol Hill for the last 20 years. The ATR, according to its website, believes “in a system in which taxes are simpler, fairer, flatter, more visible, and lower than they are today. The government’s power to control one’s life derives from its power to tax. We believe that power should be minimized.” The limitation of government is one of the primary reasons that the ATR is involved. The organization has also worked with the PPA on a national level, trying to push through pro-internet gambling legislation.
We’ll have more information for you as the forfeiture hearing approaches right here on Poker News Daily.