by Hillary LaClair, Senior Editor
It was announced earlier this week that officials in Kentucky intend to confiscate upwards of 140 online poker rooms and gambling domains that have been featured in mainstream U.S. media. Online gaming operators are not worried however; as they say they’ve got a plan to battle such asinine claims.
According the UK newspaper The Guardian, who spoke with managing director of Com Laude (PokerStars domain holder), Nick Wood, the online poker room is one step ahead. “We anticipated this could happen and we’ve developed an action plan which laregely consists of us not responding,” said Wood.
This is certainly a bold strategy for the online poker site, but others are following their lead. When asked for a statement, Full Tilt Poker refused to comment.
It is believed that PokerStars as well as many other online gambling sites have a team of lawyers together to fight state officials in the courtroom. The legal team will face Governor Steve Bashear. The counter argument that will be presented in court will essentially be that state courts have no jurisdiction over dotcom domain names that have been registered in foreign nations. Additionally, the legal team will argue whether or not accepting financial transactions from U.S. players is in violation of U.S. law.
Bashear has admitted at this time that the actions taken by the Kentucky government was made partially to “protect the interests of local horse-related gambling” which is overlooked by internet gambling laws. Kentucky hosts one of the largest horse racing events in the country, the Kentucky Derby. This may also give more political clout to preexisting WTO disputes that claim the U.S. discriminates against non-domestic gambling. Bashear has headed campaigns for land casinos to be built in Kentucky as well. This adds to the argument that Bashear is guilty of selective morality.
Other experts within the online poker industry feel that Kentucky’s efforts will fail. “This is a stunt,” says Washington attorney, David Stewart.
John Pappas of the Poker Players Alliance issued a statement regarding the legal action, saying, “The Poker Players Alliance is outraged at the actions taken by Kentucky Governor Steve Bashear and the Franklin County Circuit to seize the domain names of Internet gambling websites. We believe this action not only unduly restricts the freedom of Kentucky residents to play games of skill such as poker online, but sets precedent for censorship of the Internet by force.
Many of Governor Beshear’s arguments – that online poker is illegal, unregulated and without a mechanism to capture tax revenue – are false. Online poker is not illegal under Kentucky law, is regulated in its home jurisdiction and the Commonwealth of Kentucky chose not to license and regulate poker websites. If the Governor truly wants to implement tighter regulations, taxation mechanisms and consumer protections on Internet gambling, the PPA suggests he publicly support federal legislation by U.S. House of Representatives Financial Services Chairman Barney Frank, H.R. 2460, which would achieve those goals.
Poker is a game of skill, a true American pastime and has a proud heritage in Kentucky. Simply because the game has evolved into the 21st Century, it should not be treated as suspect activity.”
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