iMEGA Deserves Tons of Credit for Successful Kentucky Outcome

The Interactive Media Entertainment & Gaming Association - otherwise known as iMEGA.org - provided the online gambling industry with its biggest win to date and on behalf of Gambling911.com, we would like to congratulate them on a job well done.

The Kentucky Court of Appeals issued a ruling today prohibiting the seizure of 141 Internet domain names by the state.

In a 2-to-1 majority opinion, the court ruled for the Interactive Media Entertainment and Gaming Association (iMEGA) in its suit against Judge Thomas D. Wingate (No. 2008-CA-002000-OA), by blocking the seizure orders issued by the Franklin (KY) circuit court judge for the domain names, all related to Internet gambling (Commonwealth of Kentucky, Franklin Circuit Court, Division II, 08-CI-1409).

I was with Edward Leyden, attorney and President of iMEGA, at the time the first hearing took place on this matter.  Leyden worked throughout the night preparing for this case despite having the flu.  Immediately after Wingate rendered his decision several days after that hearing, Leyden marched right down the street and filed the appeal.  I knew after spending time with Leyden that the industry was in the finest hands possible. 

iMEGA is looking to represent the online gambling sector (and any gambling interests for that matter) as a whole.  Founder Joe Brennan, Jr. has little interest in shunning particular groups within the sector.  His desire is to work with everyone from the online casino affiliates to the poker rooms to the sometimes ostracized sports betting sector, which was the first to enter the Web betting arena.  Its members - the vast majority of which support iMEGA under the cloak of anonymity in order to operate more effectively and free from possible retribution - represent every sector of online gambling. 

iMEGA itself operates free of any rhetoric.  They are all about working with other groups and rarely if ever toot their own horn.  I witnessed this firsthand when Leyden had to put up with some garbage from another law firm, which shall remain nameless.  The little "know it all" who gave Leyden a hard time made a complete ass out of himself in front of Judge Wingate.  It was clear he came unprepared, had zero clue about the industry, and probably needs to stay out of the court room and let the real attorneys take care of business.   I should note there were some excellent attorneys representing the industry along with Ed.  But Leyden and Brennan, Jr. quickly realized they had to take the reigns and contest Judge Wingate's decision without delay.  Thankfully they did, and as a result the appeal was won.  All other interested parties worked in conjunction with iMEGA from that point forward.  

Joe Brennan, Jr., in speaking with Gambling911.com, was very appreciative Tuesday night towards the other parties that worked closely in making the appeal a success:  specifically the Internet Gaming Counsel and its lawyers and the five domain names (Sportsbook.com, etc.) represented by the brilliant Kentucky attorney, Jimmy Johnson.  

Tuesday's decision was the single most important win for the online gambling sector ever.  Had Kentucky been allowed to seize these 141 domain names, a blood bath would certainly have followed.  Internet sportsbooks, poker rooms, online casinos, affiliates, gambling portals would no longer exist within two years.  This is not a dramatic exaggeration; we're talking about a reality here.   The law firm representing Kentucky already had other states preparing to file similar suits.  Had the industry lost this appeal, dozens of states could simply look to the Kentucky Appeals ruling and enjoy similar outcomes.  The result:  More online gambling domains seized and blocked in state after state after state to the point where it would no longer make sense trying to operate in the U.S. market.

What a lot of people don't realize is that Kentucky Governor Steven Beshear's efforts have actually helped iMEGA build its case against the U.S. Government regarding enforcement of legislation that prohibits many forms of online gambling by holding banking institutions responsible for policing the industry.  As part of its argument, iMEGA contends that such prohibition is unconstitutional due to the element of "protectionism" involved.

The lawyers representing Kentucky cited the federal legislation (the Unlawful Internet Gaming Enforcement Act) on numerous occasions while Beshear himself insisted that online gambling operators were "leeches" upon the commonwealth's own gambling revenues - more specifically the Kentucky Derby.   They "undermine Kentucky's horse racing industry" he declared.

The Interactive Media Entertainment & Gaming Association has a lot of work ahead but they single-handedly demonstrated what it takes to get the job done.  All the rhetoric in the world won't accomplish anything other than to prolong the agony.

In the words of our new U.S. President, Barack Obama:  "Yes we can".

And YES WE CAN get the job done and legalize online gambling once and for all if everyone comes together and starts working towards the common goal. 

Once again, congratulations to iMEGA and its members, who have ensured this trade organization's existence through their generous contributions, for a job well done. 

The piece you have read is an editorial from Gambling911.com's Publisher, Christopher Costigan.   

Christopher Costigan, Gambling911.com Publisher