gambling911.com did a live blog from the Kentucky courtroom where a hearing was held today on the 141 domains seized by the commonwealth of Kentucky.
After hearing arguments from attorney representing the gambling industry and representing the Commonwealth of Kentucky, the judge advised he would need 7 days before making his ruling.
The most interesting argument from the live blog was that made by Edward Leyden attorney for iMEGA, Interactive Media Entertainment & Gaming Association, who stated that the forfeiture is unprecedented and clearly unusual. He also brought up TwinSpires.com, a legal online horse racing site based on the commonwealth of Kentucky and operated by Churchill Downs, home of the Kentucky Derby.
Mr. Leyden noted that TwinSpires.com is engaged in online gambling.
So gambling in the state of Kentucky is not a novel concept (as it might be in Utah where all forms of gambling are illegal). ”
This action taken by the commonwealth was not wholly benevolent,” Leyden points out.
Under the Commerce Clause, states are prohibited from engaging in discrimination as a means of eliminating competition.
Protectionism prohibited was the theme and the concept that this whole matter is unconstitutional.
Mr. Leyden makes an excellent argument.
How the state permit an online gambling site which is headquartered in Kentucky, while seizing domains of competitors not located in Kentucky?
The action by Kentucky has many flaws as we discussed a few days ago in our analysis of the ICA brief filed in this case.
Mr. Leyden argument just adds another.
The Judge, Thomas Wingate also ruled that until he finalizes his decision, the commonwealth must leave the gambling sites “as is”. This means they will stay live.
As we reported previously GoDaddy.com has relinquished certificates for a number of online poker sites including CakePoker.com, UltimateBet.com and DoylesRoom.com to the commonwealth of Kentucky as part of a seizure order brought on by Governor Steve Beshear.
While Godaddy.com stated they did not hand over the domains, we reported a couple of weeks ago that the certificates giving the holder, ownership of the domain, had been given to the Commonwealth and today this was confirmed