by Hillary LaClair, Senior Editor
January 20, 2009
While the online poker community rejoiced over Obama’s inauguration today, the Commonwealth of Kentucky gave them something else to celebrate. In the ongoing litigation and possible seizure of 141 internet gambling domains, the three-Judge panel ruled in favor of iMEGA and its defendants, 2-1.
Among the domains in question were Ultimate Bet, Absolute Poker and the Cake Poker Network much to the dismay of many online poker advocates. These poker rooms filed an amicus brief with iMEGA, alongside of the Poker Players Alliance, the American Civil Liberties Union, the Electronic Frontier Foundation and the Center for Democracy and Technology.
The panel of judges in the Court of Appeals consisted of Michelle Keller, Jeff Taylor and Michael Caperton. The main focus of the case was whether the websites in danger of being seized were “gambling devices.” Keller commented, “It stretches credulity to conclude that a series of numbers, or Internet address, can be said to constitute a ‘machine or any mechanical or other device…designed and manufactured primarily for use in connection with gambling.”
Judge Taylor based his ruling on whether the Commonwealth had the right to use a civil proceeding to prosecute a criminal offense, while Caperton was the only of the three that felt the domains could be considered gambling devices.
The legal team that represented a number of online poker sites argues that if internet poker rooms were considered “gambling devices,” so too should billboards advertising Horseshoe Casino, which is located across the Ohio River – from Kentucky in Southern Indiana. The Poker Players Alliance took a different approach however, arguing the poker is a game of skill rather than a game of chance and should therefore not be considered “unlawful internet gambling.” The ACLU felt that the seizure of the gambling domains would be a violation of the Constitution, and more specifically, the First Amendment.
iMEGA chairman, Joe Brennan, said in a statement posted on the website, “We are very happy with the court’s ruling today. The judges clearly agreed with our interpretation of the law, and thankfully, this reverses what would have been a terrible precedent for our country and the Internet.”
Jon L. Fleishchaker, an attorney that represented iMEGA commented, “This decision confirms why we went the way we did with the suit. We know when we brought this to the Court of Appeals, that we would get justice for iMEGA and the domain names in Kentucky.”
iMEGA continues to fight for legalized internet gambling, having just posted a press release on its website that notes its lawsuit with the Third Circuit Court of Appeals. Sometime in April, the internet gaming advocacy group will present its oral arguments in its attempt to have the Unlawful Internet Gambling Enforcement Act, or UIGEA, overturned.
“We’re very happy the Court is moving forward to schedule oral arguments,” said Brennan. “We’re confident we have a strong suit, and it will be difficult for the Department of Justice to defend the UIGEA, because it is so fatally flawed.”
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