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Answering the Questions

The lawyers for the state of Kentucky just may be on the losing end of this case if the recent presentation and hearing for the Kentucky Supreme Court is any indication of the expected outcome. Kentucky’s governor, Steve Beshear, has adamantly pursued this case and his motives for such strong prosecution of the online casinos have come into question. The state of Kentucky is obviously not pointedly against gambling in general, the state is home to horseracing and generates a lot of revenue from horserace betting. But the online casino gambling industry presents an obstacle for the state and some of horseracing revenues are funneled out of the state through the internet gambling industry. Likely, this is the primary reason for Beshear’s attack against the internet gambling industry, protection of state land gambling revenues.

The lawyers representing the State of Kentucky, and Beshear’s interests in particular, were presented with a lot of targeted and hard-hitting questions by the Kentucky Supreme court at a recent hearing, as well as from iMEGA’s lawyers. At this point, the court’s line of questioning seems to indicate that the Supreme Court is leaning in favor of the online casinos in the case. There is still time left before the SC will make a ruling, but iMEGA and the gambling industry seem to have the stronger case and a lot of outside support.

The state of Kentucky has a very weak case against the online casinos and internet gambling sites identified for domain name seizure. Central to the case is the fact that Governor Beshear is really targeting the internet gambling sites with the harshest legislation possible, instead of using the barest levels of regulation to achieve the desired results. The state is asking for the right to disregard international domain name registrations…a move that could vastly change the landscape of global internet laws – and the rationale for the request is likely just not strong enough in the end.