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September 26, 2008 11:47 AM PDT

Kentucky attempts to seize gambling site domains

by Stephanie Condon
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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 press release 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 statement.

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.

Stephanie Condon is a staff writer for CNET News focused on the intersection of technology and politics. She is based in Washington, D.C. E-mail Stephanie.
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Add a Comment (Log in or register) (22 Comments)
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by PzkwVIb September 26, 2008 12:44 PM PDT
Ok the courts in Kentucky are now officially idiots. They lack jurisdiction and nd even a child could recognize that.
Reply to this comment
by Too Old For IT September 27, 2008 11:04 PM PDT
Uh oh, now you've said bad things about Kentucky politicians. They will want cnet.com turned over to the state ...
by pgp_protector September 26, 2008 12:54 PM PDT
""Our laws are very specific about what constitutes illegal gaming, and anything that promotes or supports illegal gaming in Kentucky is illegal," she said. "

Wow talk about stretching
Reply to this comment
by pakaufman326 September 26, 2008 1:16 PM PDT
Kentucky's reputation as a backwards state is kept alive once again. Someday it should get with reality and keep up with the current generation. Thank you Kentucky!
Reply to this comment
by Michichael September 26, 2008 1:22 PM PDT
Illegal in the state they're hosted maybe...
Reply to this comment
by moordrake September 26, 2008 1:22 PM PDT
Who's gonna let all the school kids know they are now headed for jail, for the crime of their school benifiting from funds generated by gambling, The state lottery will imediatly be seized and locked away for the common good.
Reply to this comment
by Lerianis September 26, 2008 2:18 PM PDT
This is just, plain and simple, stupid. Someone should go up to Kentucky's lawmakers, slap them, and remind them that things that cross over state lines (even in a roundabout way) are the sole purview of THE FEDERAL GOVERNMENT! That means....... hands off the internet, because the bits you blast from one end of it to the other are likely to pass through wires that cross state lines, therefore...... these laws are illegal.
by Magicland September 26, 2008 2:16 PM PDT
The question is why isn't the entire internet being banned from use in Kentucky, as it might contain something which might be illegal in Kentucky? The state is at fault for allowing its residents to purchase computers and go online. It's not the sites fault, it's the Kentucky residents. Just outlaw using the internet in Kentucky, and there's no problem. Heck, maybe they can ban books while they're at it.
Reply to this comment
by Dalkorian September 26, 2008 5:15 PM PDT
Well, if you ban the internet and ban books, what are Kentuckians supposed to do after having illicit sex with their siblings? Make moonshine?
by nommi123 October 15, 2008 9:02 PM PDT
Well...! Ive transferred my domains to Uk registrar Safenames and in my terms and conditions it states that they are governed by UK law and jurisdiction, so if they hand my domain names over then I can sue them. My attorney spoke with them and I can see on whois that everyone is using Safenames because of this clause in there terms and conditions. Take a look at this link and give them a call. http://www.safenames.net/gamingwebsites.aspx Fulltitlpoker.com, doylesroom and Bodog are with these guys to
by ExecLink September 26, 2008 2:32 PM PDT
If this ruling is allowed to stand, it will be the end of the internet as we know it.
Take this to the next level. Say china declares a topic illegal, such as Tiananmen Square Protests. If a news orginization publishes a report, then China could then declare it is in violation of their law and take away the domain of say New York Times, CNet, .....
Reply to this comment
by gspears3 September 26, 2008 3:00 PM PDT
you can almost hear the banjos playing the theme from Deliverance. this is why there's a law against marrying your cousin (widely ignored in Kentucky)
Reply to this comment
by Earl Benzar September 26, 2008 3:21 PM PDT
Seizing domain names? ***? It's clear the good old boys hate the internet and want it controlled. Can't have too much democracy you know.
Reply to this comment
by TrishG62 September 26, 2008 3:28 PM PDT
Making such a stereotypical slur about the residents of Kentucky over the behavior of a politician is about as ignorant as the governor. I was wondering how long that idiocy would take to start.
Reply to this comment
by salvador07 September 26, 2008 6:31 PM PDT
isnt it ironic the state that makes the most money in october RIGGING the kentucky derby wants to talk about illegal gambling....lol... YOU GUYS REALLY THINK BIG BROWN A GREAT RACE HORSE COULD BE IN LAST ..LOL.. KENTUCKY MADE ALOT OF MONEY OF A 1/9 FAVORITE
Reply to this comment
by jailer1 September 27, 2008 12:21 PM PDT
No, it's not ironic...just coincidental.

Jim, KY
by HighwayHome September 26, 2008 7:33 PM PDT
I don't know about their backwoods politics, but at least they have great fried chicken, regardless of the food flavoring chemicals used to season it. And by the way, the banjo isn't such a bad instrument.
Reply to this comment
by Valethar September 26, 2008 7:50 PM PDT
See what happens when your politicians have parents that are blood relatives before marriage?
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by lolalola003 September 27, 2008 6:06 AM PDT
I am absolutely appalled by this news story. As a library and information professional I think this is akin to censorship and a violation of our freedom. This is not unlike what happens in China where citizens' access to online information is controlled by the regime. If this happens we can only guess what's coming next. Some lawmakers in Kentucky want casinos in the state and these online sites are probably seen as a threat. This is just plan wrong. What will be next?
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by Heebee Jeebies September 27, 2008 9:50 PM PDT
So you can gamble (bet on horses) as long as it is at your state control casino's. What a bunch of horses rears.

Robert
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by inachu September 29, 2008 6:25 AM PDT
If the gambling sites are hosted in Kentucky then take them down.
But if they are hosted outside of Kentucky or USA then they have ZERO power.
Reply to this comment
by nommi123 October 15, 2008 9:05 PM PDT
As mentioned in a earlier reply, safenames are UK registra and in there terms and Conditions it states that they are goverened by UK law and if they hand over your domain name to Kentucky, you can sue them. All the big players are with them. Bodog, Fulltilt Poker, Doyles Room etc. http://www.safenames.net/gamingwebsites.aspx check out the link.
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