Industry Reacts to Kentucky Supreme Court Taking Internet Gambling Case

On October 22nd, oral arguments will be heard in the Kentucky Supreme Court in Frankfort. Attorneys for the Interactive Media Entertainment and Gaming Association (iMEGA) will argue why Governor Steve Beshear and company did not have jurisdiction to seize 141 internet gambling domain names.

The festivities will kick off at 11:00am local time and 15 minutes are allotted for each side to lobby their points. Despite the case centering on internet gambling, it has attracted a variety of interested parties, including the American Civil Liberties Union (ACLU). The organization’s Bill Sharp told Poker News Daily, “We are pleased that the Kentucky Supreme Court has agreed to hear this case because its implications for free speech on the internet are extremely important, not just in Kentucky, but also globally.” A three-judge Court of Appeals panel ruled in favor of the industry in January. Counsel for the Commonwealth of Kentucky appealed one day later.

Also closely monitoring the developments in the Bluegrass State is the Safe and Secure Internet Gambling Initiative (SSIGI). The Washington, D.C.-based organization has been involved in numerous issues on a national level and its spokesperson, Michael Waxman, told Poker News Daily, “We stand united in opposition to the Governor’s misguided attempt to prohibit internet gambling activity. Prohibition has failed before and is not likely to stop Kentuckians or anyone in the U.S. from continuing to find a way to gamble online. The Kentucky Supreme Court should make the right decision and end the illegal seizure of gambling domain names.”

iMEGA claims that it has received support from a broad coalition that includes the Poker Players Alliance (PPA), ACLU, Center for Democracy and Technology, Electronic Frontier Foundation, Internet Commerce Association, eBay, and Network Solutions. PPA Executive Director John Pappas is looking forward to iMEGA’s arguments in the Kentucky Supreme Court on October 22nd: “I think iMEGA will make strong a case before the court. The PPA has filed amicus already and we hope our reasoned amicus talking about poker as a game of skill will hold weight in the justices’ eyes.”

As it currently stands, iMEGA’s case is the third of three on the docket for October 22nd and the final one to be heard that week. A lawsuit between Auto Owners Insurance Company and Omni Indemnity Company will kick off the proceedings at 9:00am, followed by a hearing about Miranda rights at 10:00am. A total of seven justices appear on the Kentucky Supreme Court, led by Chief Justice John Minton, Jr. The remainder of the panel includes Lisabeth Hughes Abramson, Bill Cunningham, Mary Noble, Wil Schroder, Will Scott, and Daniel Venters.

The Commonwealth seized the 141 internet gambling domain names in question on the grounds that they constituted illegal “gambling devices,” a term that traditionally refers to objects like slot machines and roulette wheels that you’d find in an underground casino. The list of sites at risk includes some of the industry’s giants like PokerStars, Ultimate Bet, and Full Tilt Poker. Judge Thomas Wingate upheld the Commonwealth’s actions in October, prompting iMEGA and company to seek the involvement of the Court of Appeals in Louisville.

The Bluegrass Institute held an emergency summit when the seizure first broke last September. Its Director of Policy and Communications, Jim Waters, told Poker News Daily, “Hopefully, the Supreme Court will protect the freedom we’ve enjoyed on the internet in Kentucky. If nothing else, maybe this action will force the State to clearly share its stance on online gambling.” A recent ruling in the Third Circuit Court of Appeals noted that the legality of internet gambling may ultimately depend on the state a player is located in.

Stay tuned to Poker News Daily for the latest from the Kentucky internet gambling case.

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Thu, September 17th, 2009

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