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Sunday, September 28, 2008 7:32 AM/EST

Gambling Domains Seized by Kentucky

From reports, it appears that Kentucky Governor Steve Beshear has attempted to seize 141 gambling-related domain names under a state law that allows for seizure of items used for illegal gambling. It appears that the seizure order (click here for a copy of the initial order) was signed by a circuit judge, but later reports indicate that the judge is holding further hearings and seeking further arguments. A hearing will be held Oct. 7, according to TheDomains.

See page 4 of the seizure order for a complete list of the 141 domains. Here are some of them:

  • 123bingo.com

  • 777dragon.com

  • indiancasino.com

  • jackpotcity.com

  • powerbet.com

  • crazypoker.com

  • vegaslucky.com

That sort of thing.

According to DomainNameNews, several of the domains are for popular sites, including PokerStars.com, FullTiltPoker.com, BodogLife.com, GoldenPalace.com, Bet21.com, DoylesRoom.com and IndianCasino.com. It also reports that at least one registrar (Enom) has transferred domains pursuant to the order, including one whose registrant died of a heart attack this summer.

The seizure order says that the domains are to be transferred by any registrar to a plaintiff's account at that registrar (the plaintiff being the Commonwealth of Kentucky), but that the domain names' configuration will be otherwise unchanged. This means that any gambling sites run on those domains or, for that matter, anything else on those domains, such as PPC ads, would remain functional.

All things considered, this seems like simple-minded grandstanding without any good law behind it. The Constitution vests Congress with power to regulate interstate commerce, which the domain name market clearly is. In fact, these businesses are truly international. And it's a safe bet that none of the gambling companies or registrars operates in Kentucky, perhaps not even any of the domain name holders. That the state argues that residents of Kentucky engage in illegal gambling doesn't give the state jurisdiction. The Internet Commerce Association, a domainer lobby, has weighed in on the matter in opposition to the state's move.

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