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Jurisdiction Over Online Casinos?

The scheduled November 17th forfeiture hearing should prove very enlightening as the Kentucky government will attempt to seize the domain names of any online casino gambling site that still accepts Kentucky players. The courts handed down the ruling that only the sites that effectively block the Kentucky gambler (and those advertising and information based sites) will find their domains safe from seizure. But even with the official ruling and deadline in place, many of the online casinos are wondering how the state plans to enforce the domain name seizure. All of the sites are licensed outside of the State of Kentucky and some of the casinos are actually even registered through foreign domain name registrars.

The Judge’s ruling in the case may cause some contention in the international online casino gambling industry. The Judge’s ruling finds that individual state governments have jurisdiction over internet content, not just the state/country where the site is registered. This conclusion is actually widely contested and many online casino industry analysts believe that the ruling will not stand if it is appealed up to the federal courts.

The Judge has basically given any country in the world the go-ahead to attempt to seize the domain name of any company that is breaking the nation’s laws. As it stands, the individual countries have taken the banning of online casino gambling upon themselves through IP blocks. The US even has rough legislation in place aimed at the financial services sector. But Kentucky’s attempts to seize the control over an entire domain name may be a bit far-fetched if you ask many in the industry.