State of Kentucky siezes or attempts to seize 141 gambling domain names

[belgamo]

Gov. Steve Beshear is sending a message to to the more than 140 online gambling Web sites that operate in Kentucky: All bets are off.Beshear said his administration sought and was granted an order by a Franklin County Circuit judge last week that transferred the domain names of 141 illegal Internet gambling sites to the Commonwealth of Kentucky in an effort to stop illegal and unregulated online gaming. Kentucky is the first state to bring an action against Internet gambling operators that has resulted in the seizure of domain names.The order came last week in response to a suit filed by the Justice and Public Safety Cabinet on behalf of the Commonwealth seeking to force the sites to block access to Kentucky users, or relinquish control of their domains. Judge Thomas Wingate ordered a forfeiture hearing for Thursday on the matter.The Justice Cabinet had asked the court to order Internet registrars to transfer control of the domain names to the Commonwealth, pending a hearing on whether forfeiture is required.“Unlicensed, unregulated, illegal Internet gambling poses a tremendous threat to the citizens of the Commonwealth because of its ease, availability and anonymity,” Gov. Steve Beshear said. “The owners and operators of these illegal sites prey on Kentucky citizens, including our youth, and deprive the Commonwealth of millions of dollars in revenue. It’s an underworld wrought with scams and schemes.”By seizing the domain names, Kentucky can require that the illegal casino operators use readily available technology to block their domains from being accessed in the Commonwealth.Beshear said Kentucky loses tens of million of dollars a year to online gambling, which is illegal in all 50 states. And, he said, the illegal activity has repercussions far exceeding its monetary losses to the Commonwealth:Unlicensed Internet gambling significantly undermines and threatens horseracing, Kentucky's signature industry and a key tourism industry, by creating unregulated and untaxed competition.The accessibility of the Internet, and the unregulated and private nature of Internet gambling, creates conduits for youths to log on and place wagers.The anonymity of the Internet and sophistication of encryption devices make it difficult to trace online laundering schemes.The unregulated gaming lacks consumer protections to ensure that individuals who choose to gamble are actually paid for their winnings. Kentucky law has long reflected its strong public policy prohibiting unlicensed, illegal, and unregulated gambling operations, Beshear noted, adding that the Commonwealth is uniquely suited to bring action against illegal Internet gambling operators. Sections of KRS Chapter 528 specifically mandate the forfeiture of any gambling devices, such as domain names and websites for Internet gambling, and make it illegal to conduct, promote, advertise, own, profit from or conspire to profit from an illegal gambling operation.Secretary J. Michael Brown said that site owners, when registering domain names, agree to conditions that stipulate the domain name not be used for illegal purposes. He noted that some online gambling sites already block access to Kentucky users.“Gov. Beshear has once again demonstrated that he is willing to take bold and innovative steps to protect Kentuckians and Kentucky’s legitimate businesses,” Brown said. “Illegal Internet gambling poses a unique threat to our Commonwealth. For individuals – particularly our youth – it is tantamount to a virtual home invasion. For some of our vital and most venerable legitimate enterprises, it undermines their exemplary regulatory compliance and siphons away their constituents. “We are hopeful that once this litigation is concluded, the Commonwealth will be off limits to these illegal purveyors.”copied from This in NO WAY affects withdrawels at any casino, it is merely an attempt by a state to take over the DOMAINS, not the casinos. 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[ohbhave]

September 26, 2008 11:47 AM PDT Kentucky attempts to seize gambling site domains</h1>Posted by 11 comments  Gaming industry and Internet commerce groups are balking at the state of Kentucky's attempts to seize 141 Internet domain names for online gambling sites. Lawyers will descend upon a Frankfort courtroom on Friday for the next phase of the Kentucky takeover, which began with a lawsuit from the state's Justice and Public Safety Cabinet, seeking to force the gambling sites to block access to Kentucky users, or relinquish control of their domains. A district judge on September 18 ordered (PDF) the domain names be transferred to the state after Friday's hearing. Representatives for the sites will have an opportunity at the hearing to object to the transfers. The state initiated the lawsuit in an effort to stop illegal online gaming. Kentucky is the first state to bring an action against Internet gambling operators resulting in the seizure of domain names, according to a from Kentucky Gov. Steve Beshear's office. The owners and operators of these illegal sites prey on Kentucky citizens, including our youth, and deprive the Commonwealth of millions of dollars in revenue, Beshear said. It's an underworld wrought with scams and schemes. Among other things, the state says online gambling drains the state of money by undermining horse racing, a key tourism industry for the state. The list of sites affected includes AbsolutePoker.com, Bodoglife.com, and PokerStars.com. A large number of the sites have already been transferred to the state or are now locked from being transferred to anyone else, according to Jennifer Brislin, communications director for the Justice Cabinet. Some sites, such as GoldenCasino.com, have already notified users based in Kentucky they will no longer have access to the site. There's a recognition among the industry that this is an action that has been occurring illegally, Brislin said. Registrars in the United States and foreign countries have been following the court order. Groups like the Internet Commerce Association have voiced their concern over the state's actions and are skeptical the seizure would stand up to legal scrutiny. It appears that there may be no statutory basis for this unprecedented action, that Kentucky may lack sufficient jurisdictional grounds and that it also may violate the Commerce Clause of the U.S. Constitution, ICA President Jeremiah Johnston said in a . The ICA, along with other groups like the Interactive Media Entertainment and Gaming Association, are actively opposed to the court order. However, Brislin said it is clear the state has jurisdiction to act because the sites it is attempting to take over agreed under the Internet Corporation for Assigned Names and Numbers to refrain from using their respective domain names for illegal purposes. Our laws are very specific about what constitutes illegal gaming, and anything that promotes or supports illegal gaming in Kentucky is illegal, she said. Copyright ©2008 CNET Networks, Inc.,

 

[Felicie]

To hell with violating the Commerce Clause of the U.S. Constitution, they'd better remember the We the People Clause and back up a bit. Of course these are the people that promote running a beautiful horse to death and they call that legal gaming. They should shoot the owner not the horse. "
Interesting article though.

 

[Emmanuel]

Thats some bad news .... had it head it a while back in other forums too. I hope that these casinos put up a legal battle against them. They need to understand that people want to earn and they cannot control that.Well said , Felicie , We The People is something to ponder at.