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Kentucky Governor Steven Beshear and his legal counsel have filed an appeal with the state court after losing a case Tuesday to seize 141 online gambling domain names.
In a 2-to-1 majority opinion, The Kentucky Court of Appeals 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).
In less than 24 hours Beshear filed a Notice of Appeal, which was widely expected by industry insiders, though few believed the response would come so quick.
"This is like bad gamblers trying to chase their money," said one industry expert when Gambling911.com advised of Beshear's actions.
On Tuesday, Judge Michelle M. Keller, in her majority opinion, found that Internet domain names for online gambling Web sites were not illegal "gambling devices" by Kentucky law, as had been claimed by attorneys representing the Commonwealth, in their attempt to seize control of the names from their owners. Judge Keller stated that while the Kentucky legislature could have chosen to include Internet domain names in its gambling devices law, it had not, therefore the Commonwealth could not rightfully proceed with its forfeiture action.
"[I]t stretches credulity to conclude that a series of numbers, or Internet address, can be said to constitute a "machine or any mechanical or other device...designed and manufactured primarily for use in connection with gambling," Judge Keller wrote. "We are thus convinced that the trial court clearly erred in concluding that the domain names can be construed to be gambling devices."
Beshere had previously referred to online gambling operators as "leeches on the community".
To read the appeal, click here for the PDF document.
Christopher Costigan, Gambling911.com Publisher
