Kentucky Judge Hears Arguments in Online Casino Domain Name Case

Under the Commerce Clause, states are specifically denied the ability to discriminate among businesses as a means to removing competition.

The arguments have been presented in the Kentucky online gambling domain name case, and now the judge will take a week to consider his decision. Franklin County Circuit Court Judge Thomas Wingate heard both from a multitude of attorneys representing Internet casinos and Robert Foote, a private attorney representing the state.

It is notable that a private attorney was hired by the state to take the issue to civil court, rather than have the state Attorney General prosecute the case. One of the state's contentions is that domain names constitute illegal gaming devices in Kentucky, but there has been no proof that any illegal activity by the sites has occurred.

Neither have domain names been found to be devices, nor has it been established that the casinos "reached into Kentucky", as Foote argued. Thus the point by Bill Johnson, representing a group of sites, that legislative policy has not been declared and defined. This would mean the state is asking Wingate to perform the duties of state legislators, which is beyond his authority.

Several attorneys pointed out that gambling device meant mechanical device, whereas domain names are just typed letters.

Edward Leyden, representing iMega, brought up the issue of the Commerce Clause of the Constitution, which forbids states to regulate commerce. Under the Commerce Clause, states are specifically denied the ability to discriminate among businesses as a means to removing competition.

This lies with the heart of Governor Steve Beshear's dispute with the online gambling sites, as Beshear has admitted the problem is that he believes online gaming takes away from play at gambling venues that are taxed by Kentucky.

Leyden specifically mentioned TwinSpires.com, a Churchill Downs site that handles online horse race wagering. He showed the court that online gambling is not the issue, but competition.

Wingate may take a week to sort out arguments, but the overwhelming law seems to be on the side of online casinos. Still, anything can happen, and the gambling industry won't be sitting easy for a few days, at least.