Court of Appeals Grants Stay in Kentucky Internet Casino Case
The Kentucky Court of Appeals today issued a stay a forfeiture hearing regarding online casino domain names, scheduled for December 3rd. By granting the stay, the appeals court allows attorneys opposing the order to present arguments against the decision before allowing the seizures to proceed.
The stay was sought by the Interactive Media Entertainment and Gaming Association. IMEGA's general counsel, Ed Leyden, told Online Casino Advisory the stay was necessary to prevent damage that might be undoable from occurring while the order was being appealed. He said, "Once you squeeze the toothpaste from the tube, it's not really possible to put it back in."
IMEGA has also filed a petition before the appeals court to overturn Judge Thomas Wingate's decision to allow the forfeitures. The hearing on that petition is scheduled for December 12th.
The appeals court also combined the iMEGA petition with a narrower filing by the Interactive Gaming Council. Both had contended the Kentucky action lacked proper jurisdiction. IMEGA also argues that the order is unconstitutional, misapplies a Kentucky law regarding "gambling devices", and should never have been started as Secretary of Justice Michael Brown lacked proper authority.
IMEGA chairman Joe Brennan, Jr., said, “We’re pleased that the Court of Appeals has given us the opportunity to challenge these seizures. The commonwealth has tried to take these domains for their own financial gain, violating Kentucky law, exceeding their jurisdiction, and setting a terrible precedent in the process."
The Kentucky action has led to calls from Internet freedom groups and First Amendment watchdogs to protest and demand the order be struck down. As the order was set up by Kentucky Governor Steve Beshear to protect Kentucky gambling interests and revenues, Online Casino Advisory senior gaming analyst Sherman Bradley has led a call to boycott Kentucky gaming and other industries. This has led to the establishment of the website BoycottKentucky.com.
Brennan remarked, “Kentucky is opening the door for any government - state and local, foreign and domestic - to use what amounts to blackmail to achieve its ends. If this precedent is allowed to stand, it’s not hard to imagine a government like China utilizing this kind of seizure power to prevent free media, like the New York Times, from reaching their citizens.”
