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Online Casino Case Gets Its Day Before Kentucky Supreme Court

The last gasp for the state of Kentucky's bizarre attempt to seize 140 online casino domain names occurs today, as the case advances to hearings before the state Supreme Court.

The bewildering reasoning behind an action by the state of Kentucky to seize 140 online casino domain names gets one more airing as the state Supreme Court hears arguments today. The state is appealing a decision by a Kentucky appellate court that it had misused an old statute in applying the term "gambling device" to Internet gambling domain names.

The case has captured significant attention outside the online gambling world as legal precedents affecting the Internet around the globe may emerge. By attempting to force forfeiture of the domain names, Kentucky is seeking to establish its jurisdiction over companies outside the US.

The court of appeals never made it to this argument, having decided that the antiquated "gambling device" did not envision nor include Internet connections. The court also pointed out that it is the duty of the legislature to create a law against online casinos if they so desire. It was judged that lawmakers had had such an opportunity and declined to act.

Kentucky representatives claim that the bottom line is that these companies operate illegal online gambling in the state. But defense attorneys assert there is no law against online gambling in Kentucky, and point out the operation of Internet wagering by TwinSpires, an arm of famed Kentucky track Churchill Downs.

Defense lawyers also have due process arguments in their favor, but legal experts expect the case to be decided again by narrower arguments, including a validation of the appellate ruling.

Published on October 22, 2009 by TomWeston

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