IMEGA's Leyden Speaks Out About Kentucky Online Casino Case

He said that the online gaming operators were "...not criminals, and very much want to be a part of the system. There are reasonable ways for reasonable people to resolve this."

While waiting for the potentially historic verdict in the Kentucky online gambling case, Online Casino Advisory contacted Ed Leyden to ask his opinions on the matter and its future implications. Mr. Leyden is president of the Interactive Media Entertainment and Gaming Association, and an experienced lawyer who currently serves as Vice Chairman of the American Bar Association.

Leyden said it is important to realize that the heart of the issue is a tax case. Seizing domain names of online gambling sites is not about protecting the public from immorality, but ensuring that Kentucky gets a share of money that is leaving the state.

Leyden asserted that people "have their head in the sand if they think this is about online gambling only." He expects the case to have an impact on all corners of the Internet. Leyden mentioned as an example the tax case between Amazon.com and the state of New York.

If Kentucky's case is validated by the court, it would free the way for New York Attorney General Cuomo to ask the courts to seize Amazon's domain name, for example.

While he expects today's verdict to be appealed by whichever side loses, Leyden did not feel Governor Steve Beshear had "...painted himself into a corner ," adding that Beshear was "...not politically hamstrung."

Leyden clearly felt that negotiation was the best option for all parties to reach satisfaction. He said that the online gaming operators were "...not criminals, and very much want to be a part of the system. There are reasonable ways for reasonable people to resolve this."

Looking forward, Leyden accepts the likelihood that the case may advance all the way to the U.S. Supreme Court. He noted that a decade ago, in the case of the ACLU v. Reno, the Supreme Court found that the Internet was unique in that it existed everywhere, and not just in a local jurisdiction such as Kentucky.

Still, the process to get a case heard by the Supreme Court takes years, and Leyden expressed hope that "sane, sensible Congressional action" may establish policies to determine Internet rights in such cases, and disarm future legal attacks similar to the Kentucky case.

When asked if Beshear had opened a Pandora's box that could not be closed, Leyden said it is iMEGA's hope that what has come out of the box could be transformed. That is, the Kentucky case may lead to long-term, broad-reaching action that answers these Internet questions while protecting the liberties, freedoms, and rights of individuals and business owners.