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State Antes Up For Online Gambling Battle

Date: 12 December 2008

Does a Kentucky gambling case threaten your freedom and the freedom of everyone else in the United States?

That's what online gaming companies say is at stake, and it's now up to the state Court of Appeals to decide.

 

It all began when Gov. Steve Beshear went after the domain names of 141 online gambling sites, claiming they were in violation of state laws.Each of these sites is operated outside the U.S.

 

"This is a massive offshore criminal conspiracy," said Kentucky Justice Cabinet Attorney Eric Lycan.

Jon Fleicshaker, who represents some of those online interests, said those names are just like billboards along a highway.

 

"Kentucky regulates gaming in the state of Kentucky," Lycan said. "That's it, right under its police powers. The U.S. Supreme Court has held that right is virtually unlimited."

 

But attorney John Tate, who represents 61 domain names, contends the state has no legal basis for what it's trying to do.
"What the secretary is trying to do in seizing and forfeiting these domain names is to bind the world," Tate said. "If they can do it to us, we can do it to them."

 

The secretary to whom Tate is referring is J. Michael Brown, the head of the justice cabinet."You have to determine if you are going to take it to the max and we will," Tate said.

 

This is the second stop in this legal fight. The state won the first round in circuit court.The three-judge Court of Appeals panel said it will try to render a decision as soon as possible.

 

Regardless of what happens, both sides said they plan to appeal.It's estimated 13,000 Kentuckians gamble online.


 

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