Associated Press
Ky. judge allows gambling Web site case to proceed
By JOE BIESK 10.17.08, 8:10 AM ET
FRANKFORT, Ky. - A Franklin County Circuit Court judge refused Thursday to dismiss a lawsuit seeking to block access to more than 140 online casinos in Kentucky.
Judge Thomas Wingate ruled that he will hear arguments on Nov. 17 before deciding whether to give Kentucky's state government control of 141 domain names, which include the Internet's most popular gambling Web sites.
"Opposing groups and lawyers argue any judicial interference of the Internet will create havoc. This doomsday argument does not ruffle the court," Wingate wrote. "The Internet, with all its benefits and advantages to modern day commerce and life, is still not above the law, whether on an international or municipal level."
Attorneys for the state claim the sites are illegally bringing gambling into Kentucky. They claim the domain names are tantamount to illegal gambling devices - which can be seized by the state - and should be blocked to Kentucky.
Beshear, a Democrat, made his support for a constitutional amendment legalizing casino gambling a central focus of his campaign for governor last year. The governor tried and failed earlier this year to get the General Assembly to put a proposed amendment before voters.
Kentucky already allows gambling on horse racing and bingo, and has a state lottery.
Gov. Steve Beshear released a statement that he was pleased by Wingate's ruling.
"No one has been willing to step up and do anything about illegal Internet gambling until now," Beshear said in the statement. "We must protect our people, especially our children, from this illegal and unregulated activity while also protecting our legal and regulated forms of gaming in Kentucky."
Jeremiah Johnston, president of the Washington D.C.-based Internet Commerce Association, said he thought the ruling could have far-reaching ramifications on Internet commerce.
"With this decision, it's essentially throwing a wild card into the mix," Johnston said. "I definitely fear copycat actions from other states."
Ed Leyden, a Washington D.C. attorney for the Interactive Media Entertainment & Gaming Association, said he did not believe the domain names should be considered gambling devices. Leyden said he believes the Kentucky court did not have jurisdiction.
"The issues are global," Leyden said.
Wingate, meanwhile, said online casinos that don't block access to their Web sites in Kentucky could be ordered to forfeit their domain names. Others that prove they've blocked access may be released, he said.
Investigators found Internet gambling sites that already blocked to Kentucky users, Wingate said. "The defendants' domain names are virtual keys for entering and creating virtual casinos from the desktop of a resident in Kentucky," Wingate wrote.
Justice and Public Safety Cabinet Secretary J. Michael Brown said it should be fairly simple for the companies to prove they've blocked Kentucky's access. Brown, however, said he also wants the Web site operators to notify Internet registrars that they're blocking Kentucky's access as a guarantee.
"The burden's going to be on them," Brown said. "They ought not have too much difficulty stopping them if they want to."
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