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09|23|2008 02:26 am EDT

Kentucky Seizes 141 Gambling Domain Names

by Chad Kettner in Categories: Up to the Minute

The Commonwealth of Kentucky has issued a seize order to have 141 domain names taken from their current registrants. The seizure was placed because the “domains were being used in connection with illegal gambling activity.”

There were a number of popular gambling sites listed for seizure including PokerStars.com, FullTiltPoker.com, BodogLife.com, GoldenPalace.com, Bet21.com, DoylesRoom.com and also Rick Schwartz’ IndianCasino.com. The domain names were to be immediately transferred to an account of the Commonwealth of Kentucky, although the websites will continue to run as usual until a court hearing later this month.

It seems highly unlikely this move will withstand legal challenge in court, but if it does it opens the door to all kinds of strange possibilities. If any state can claim any domains that don’t abide by local laws, it seems inevitable that these types of websites will simply be moved to a foreign registrar while remaining as profitable as ever.

Another interesting point is that some of the domains are simply parked websites with no recent history of taking any bets.  Head on over to The Domains for more information on the story and a full list of the seized domains.

[via The Domains]

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  • http://CCIN.com David J Castello

    This is wrong on so many levels, but the bottom line is that Kentucky over-reached because their Governor Steve Beshear is pro-gambling and probably thought this was a clever way to protect his state’s gambling/racing interests from on-line/out-of-state competition. Ironically, this ruling has nothing to do with any type of puritan morality or anti-gambling sentiment.

    Look for this to get shot down in record time. If this ploy had any chance of succeeding Nevada would have done it ages ago.

  • http://www.gambling.com gambling

    This is pretty scary. What are the responsibilities of the registrars in this type of situation?
    I look forward to your announcement.

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  • http://www.domainsalesmachine.com Mickie Kennedy

    How about eminent domain? I suspect it will only be a matter of time before the Supreme Court-backed powers of local and state government could force domainers to give up geo domains. Domain as “private property” is already established. “Just compensation” will be high for those sites that are developed but what about the undeveloped geo domains?

  • http://davezan.com David

    Domain as “private property” is already established.

    Actually, it isn’t. The sex.com case established domain names as property for tort of conversion in California, but it never said domain names are property for any and all circumstances.

    Then you’ve got the Umbra case in Virginia which decided that domain names are “creatures of contract”. Your registrar’s contract defines your relationships and responsibilities, and obviously none of them state you own it outright.

    If someone is going to argue domain names under eminent domain, let them. You can bet for sure someone, or better yet a group, is going to challenge that.

  • http://davezan.com David

    Whoops, I meant Umbro case, not Umbra.

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  • http://www.WickedBlog.com Angela Allen Parker

    The state is trying to get by with this by saying that the domain is an instrument of gambling, under the legal definition that states the right to seize “other instruments.” This opens it up for seizure, according to these Frankfort idiots. (Oh, I’m sorry, was that opinionated?!?!)

    I’m embarrassed for my state and its politicians — especially the Governor and his office.

    As a small business owner, doing business on the web inside Kentucky, I object — LOUDLY — to this. It opens a whole venue of scary ‘legal precedent’ questions.

    Honestly, I don’t see any way this can possibly hold water — at least I hope that’s the case.

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