Kentucky Seizes Domain Names of Gambling Sites

[David Farber <dave () farber net>]

Begin forwarded message:

From: Martin Burack <marty () burack nu>
Date: October 13, 2008 3:56:47 PM EDT
To: dave () farber net
Subject: Kentucky Seizes Domain Names of Gambling Sites


http://www.washingtonpost.com/wp-dyn/content/article/2008/10/08/AR2008100802870.html

Kentucky Tests State's Reach Against Online Gambling

By Brian Krebs
Washingtonpost.com Staff Writer
Wednesday, October 8, 2008; 5:40 PM

An effort by the state of Kentucky to seize more than 140 online  
gambling Web site names is raising novel legal questions about the  
physical location of digital property and the reach of local and  
regional governments on the global Internet.

Last month, a Kentucky circuit court judge granted a request by the  
governor to have 141 Web site names used by online gaming operations  
transferred to the state's control. The action was filed by a Chicago  
law firm on behalf of Gov. Steve Beshear (D), who was elected in part  
on the strength of a promise to bring casino gambling to the state.
--snip--
Attorneys for the state convinced Judge Thomas Wingate that the  
gambling Web site names were tangible "gambling devices" that could be  
seized under Kentucky's gaming statutes. Wingate's order compels the  
entities that manage the registration of those domains, known as  
domain registrars, to transfer control over the Web sites to the state.

Jennifer Brislin, spokeswoman for the Kentucky justice department,  
said the state is seeking unspecified damages from the casinos, but  
that its primary goal is to force the Web sites to block Kentucky  
residents from visiting them. She said the majority of the registrars  
affected by the judge's order had "locked" the domains in question to  
prevent them from being transferred to another registrar pending the  
outcome of the case.
--snip--
At least two domains, luckypyramidcasino.com and highrollerslounge.com  
-- both registered through Bellevue, Wash. based registrar eNom --  
have been handed over to the state government. Enom did not respond to  
requests for comment.

Christine Jones, general counsel for GoDaddy.com, the registrar used  
by 20 of the 141 domains named in the judge's order, said the company  
tried to walk a line between complying with that demand and defending  
the rights of their customers, noting that the casino site owners did  
not have an opportunity to present their side of the case at the  
hearing in which the judge ordered the transfer of the domains.

"We issued a registrar certificate to the state that says the court  
has jurisdiction over the issue, but it doesn't have control over the  
domains, other than the ability to exercise judgment so that when  
there is a final adjudication on the merits of the case or a  
settlement by the parties, we will honor that outcome," Jones said.

On Tuesday, dozens of trade groups, domain registrars and gambling  
advocates had an opportunity to tell Judge Wingate why the case should  
be dismissed outright.

One of those at the hearing was Michael Collins, executive director of  
the Internet Commerce Association, a trade group representing domain  
name investors and online advertisers. Collins said entire prospect of  
using the Internet -- not only for commerce but for free speech -- is  
at risk if one government or state decides they can freely seize  
domain names.

"What's to keep Iran or China from doing the same thing? Yet, even  
China - which tries very hard to control the Internet its citizens use  
- hasn't tried to do what Kentucky is trying to do here," Collins said.

Collins said that while the judge appeared to listen attentively to  
statements from those defending the online casinos, attorneys for the  
state presented the registrar certificates from GoDaddy as evidence  
that the court does indeed have jurisdiction to seize the casino  
domains.

Wingate is expected to decide within seven days whether to dismiss the  
case or allow it to proceed to a forfeiture hearing.

John Levine, author of "The Internet for Dummies" and co-founder of  
the Domain Assurance Council, a non-profit industry consortium, said  
the case is likely either to be thrown out or reversed on appeal.
--snip--
© 2008 Washingtonpost.Newsweek Interactive





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