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Online Casino Domains Spared

The Kentucky domain name situation has reached a new plateau this week with a Kentucky Appellate Court’s decision to rule that online casino domain names are not within the jurisdiction of the state of Kentucky. Online casinos all over the world warily watched the situation develop as Kentucky State Governor Steve Beshear pushed for the seizure of 141 internet gambling domain names under the assertion that domain names could be considered “gambling devices.” The US and international gambling industries were outraged with the initial court ruling that sided with Governor Beshear and forced the internet casinos to rapidly withdraw from the Kentucky market or risk losing the entire domain name for their site.

The online casino gambling industry, however, isn’t one to let an issue lie without a fight. Pressure to take the issue to appellate court has proven effective and the internet industry as a whole has scored a needed win in this situation. As previous reports have noted, the issue encompassed far more than just the online casinos and instead spoke to an issue of internet ownership laws. The appellate court found that “regardless of…the advisability of regulating or criminalizing Internet gambling sites, the General Assembly has not seen fit to amend (Kentucky State law) so as to bring domain names within the definition of gambling devices."

This decision is a huge step forward for the online casino and internet poker gambling industry in the US market – it means that US states do not have the right to seize a domain name as a measure of blocking the internet gambling companies. There has been no official reaction from the Governor nor his aids and there is no indication at this point as to whether the state intends to take the issue to the Kentucky Supreme Court.