Kentucky's TwinSpires Goes From Internet Gambling Boycott to Ban
Governor Steve Beshear of Kentucky argues that online gambling is dangerous to children and consumers, so he is attempting to seize the domain names of 141 online casinos. Despite the muddied reasoning of his case, some in the federal government agree, and are pursuing the finalization of regulations implementing the UIGEA before the change of Presidencies.
The irony is that Beshear, whose ill-conceived court case has drawn calls across the Internet for boycotts of Kentucky industries in general and Churchill Downs and its online entity, TwinSpires, in specific, now faces a more complete move against online gambling than he desired. Beshear wanted to use protectionist policy to defend TwinSpires from competition, and excepted the site from his order.
But the feds have made no such distinction. Even though the UIGEA allows for horse race wagering online, banks have said part of their difficulty enforcing the payment ban is distinguishing legal from illegal online gambling. Thus, the regulations being reviewed give protection to banks who simply refuse all gambling payments, effectively including TwinSpires and other Internet racing sites.
Now Beshear finds himself in the unenviable position of defending TwinSpires as a legitimate, acceptable site for online gambling, while explaining how the sites facing his forfeiture order are any more dangerous to society than the home-grown Kentucky one.
As Beshear's move was generated by money in the form of state taxes, the rumor is that undue pressure applied by a White House official acting to protect National Football League interests may be the cause of the sudden developments at Treasury. William Wichterman is currently a top aide in the White House, but as recently as March he was paid to lobby against online casinos for the NFL.
Beshear could escape the quandary of his position by dropping the pursuit of the order in Judge Thomas Wingate's court and allying with the numerous Congressional Democrats supporting the legalization and regulation of online gambling. He would save face by using regulation as the reason for reversing his public position regarding protecting children and patrons. And TwinSpires would not be driven out of business.
Next move to the Governor.
