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It's All Wrong

The announcement that iMEGA has won the right to a hearing in the Kentucky appeals court is welcome news for the online casino gambling industry. The Kentucky case has caused international controversy even outside of the internet gambling industry because of the wide-sweeping implications that this case could have on Internet commerce as a whole. Allowing the Kentucky State government to confiscate the domain names of foreign registered domain names – even if they are online casinos or internet gambling related sites, is a bit out of the jurisdiction of the state. If Kentucky eventually succeeds in seizing the domain names this adds a whole new threat to business and industries that rely on e-commerce.

The you have to look even beyond the fact that Judge Wingate’s ruling puts the state way out of its jurisdiction if it confiscate the domain names of foreign listed and operating online casinos. The simple fact of the matter is the ruling also violates existing Kentucky State laws and is motivated by greed. The state has acknowledged that beyond just seizing the domain names for the purposes of blocking the online casino gambling sites, the state would also hold the domain names as a way to force the gambling companies to pay fines for previously operating within the Kentucky market.

The entire situation just smells fishy and it’s a wonder that the Judge Wingate found the grounds to even agree to the domain name seizure in the first place. It is very unlikely that the ruling will stand up as it goes through the higher courts in Kentucky, but in the meantime many online casinos are restructuring just in case they have to face the courts in the coming months in a forfeiture hearing.