Kentucky seeking to seize 141 gaming domains

Some good news at last.....

Kentucky Court Grants iMEGA Motion to Stay Domain Seizures

Nov. 14, 2008 -

The Court of Appeals of Kentucky has granted a motion to stay a forfeiture hearing for 141 Internet domain names. Kentucky Gov. Stephen Beshear and Michael J. Brown, the states Secretary of Justice and Public Safety, had sought the seizure of the domain names, most related to Internet gambling, in an effort to protect the states own gambling industry from competition by online gambling sites.

The Interactive Media Entertainment & Gaming Association (iMEGA), an Internet trade association in Washington, DC, asked the appeals court to stay the forfeiture hearing ordered by district court Judge Thomas Wingate scheduled for Dec. 3rd, until the appeals court had an opportunity to consider iMEGAs petition to have the lower court seizure ruling overturned. A hearing to consider that petition has been scheduled for Dec. 12th in Louisville.

Were please that the Court of Appeals has given us the opportunity to challenge these seizures, said Joe Brennan Jr., iMEGAs chairman. The commonwealth has tried to take these domains for their own financial gain, violating Kentucky law, exceeding their jurisdiction, and setting a terrible precedent in the process.

The appeals court also decided to combine iMEGAs petition with a narrower petition filed by Interactive Gaming Council (IGC), of Vancouver, BC, an international online gambling trade group. Both groups contended that the lower court lacked jurisdiction to order the domain seizures. iMEGA contends that the lower court misapplied Kentuckys specific gambling devices law in order to provide a rationale for permitting the seizures. iMEGA also argues that Kentuckys actions violate the Commerce Clause of the US Constitution, and that Secretary Brown lacked the authority to initiate the seizure action in the first place.

This matter has generated concerns across the online world about abuse of governmental power, said Brennan. Kentucky is opening the door for any government - state and local, foreign and domestic - to use what amounts to blackmail to achieve its ends. If this precedent is allowed to stand, its not hard to imagine a government like China utilizing this kind of seizure power to prevent free media, like the New York Times, from reaching their citizens.

None of the 141 domain names are owned by individuals or companies are located in Kentucky. Gov. Beshear claimed the Internet gambling sites were sapping money from the states own gambling businesses, calling them leeches on our community.

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Well it's nice to see that The Court of Appeals of Kentucky has some saneness or rather sound judgment left in them to see thru this fiasco of the domain name seizure...:thumbsup:
 
More info

In an interesting peripheral development, Kentucky Attorney General Jack Conway has apparently distanced himself from the domains case.

Part of the argument in the original case was the acceptability or standing of the Secretary of Justice and Public Safety bringing the case forward, rather than the state Attorney General. The case was actually outsourced by Governor Beshear to Chicago lawyers, reportedly on a 'no win, no fee' basis.

On Friday it emerged that the Attorney General had asked to have his name removed from the Interactive Media Entertainment & Gaming Association's court filings in the matter. Reports earlier this year claimed that the AG had refused to be drawn into, or comment on, the issue.

The legal bills are likely to be substantial in the matter, especially on Governor Beshear's side unless the 'no win, no fee' reports are true. In analysing the 43 page Wingate ruling, PC World found the interesting nugget of information that investigators spent 500 hours surfing gambling Web sites and engaging in online gambling!

Judge Wingate's ruling is also being challenged by Net Freedom organisations. This week the Center for Democracy and Technology, the Electronic Frontier Foundation and the American Civil Liberties Union of Kentucky filed a petition with the Kentucky Court of Appeals, asking the court to overturn rulings on the domain seizure issue made on September 18th and October 16th by Franklin Circuit Judge Wingate.

The three civil liberties groups argued that Wingate's order raises serious free-speech concerns and violates the Commerce Clause of the U.S. Constitution, which says the U.S. Congress has the power to regulate commerce between U.S. states. The judge also does not have the jurisdiction to force domain name registrars to turn over the domain names, and the decision to target domain names is an odd way to shut down Web sites, the three groups wrote in their brief.

Domain names are simply addresses pointing Web users to the proper Web sites, lawyers for the groups wrote.

"If allowed to stand, the court's flawed order would needlessly create uncertainty about the basic rules governing the operation of the Internet as well as the authority of courts both inside and outside of the United States to affect behavior in other jurisdictions," the groups wrote. "Moreover, if carried to its logical conclusion, the trial court's order could well impose literally billions of dollars of additional costs on individuals and businesses throughout the world that have no significant contacts with Kentucky."

On the downside, the up-and-coming Cake Poker Network has apparently barred its services to Kentucky players, who on trying to log on found the notice: "You are trying to use the application from a location that prohibits gaming activity. It is illegal to wager from this location."

Curious players were informed by Cake's support centre: "Thank you for your email. Due to recent events in the Commonwealth of Kentucky we will no longer be accepting any players from the state of Kentucky. I can confirm this applies for all players from Kentucky. Any funds in your account will be cashed out, any RakeBack due has been paid into your account as well as the value of any outstanding tournament tickets. We will now cashout your funds or you may transfer them to a non Kentucky account if you so wish. Thank for your custom at CakePoker and best of luck for the future."

PokerStars, always feisty in matters pertaining to the United States, remains convinced that it is within its rights to continue operations in the country. In a statement, the world's largest online poker venue said:

"In regards to the Kentucky case, as this case is ongoing, we are limited in what we can say. All we can do at this point is confirm our belief that PokerStars is not breaching any laws in providing our service to residents of Kentucky. We cannot comment on the reasons other sites have taken a particular action. As there is ongoing legal action in this case, we cannot discuss this any further at this time."
 
Some good news at last.....

Kentucky Court Grants iMEGA Motion to Stay Domain Seizures

Nov. 14, 2008 -

The Court of Appeals of Kentucky has granted a motion to stay a forfeiture hearing for 141 Internet domain names. Kentucky Gov. Stephen Beshear and Michael J. Brown, the states Secretary of Justice and Public Safety, had sought the seizure of the domain names, most related to Internet gambling, in an effort to protect the states own gambling industry from competition by online gambling sites.

The Interactive Media Entertainment & Gaming Association (iMEGA), an Internet trade association in Washington, DC, asked the appeals court to stay the forfeiture hearing ordered by district court Judge Thomas Wingate scheduled for Dec. 3rd, until the appeals court had an opportunity to consider iMEGAs petition to have the lower court seizure ruling overturned. A hearing to consider that petition has been scheduled for Dec. 12th in Louisville.

Were please that the Court of Appeals has given us the opportunity to challenge these seizures, said Joe Brennan Jr., iMEGAs chairman. The commonwealth has tried to take these domains for their own financial gain, violating Kentucky law, exceeding their jurisdiction, and setting a terrible precedent in the process.

The appeals court also decided to combine iMEGAs petition with a narrower petition filed by Interactive Gaming Council (IGC), of Vancouver, BC, an international online gambling trade group. Both groups contended that the lower court lacked jurisdiction to order the domain seizures. iMEGA contends that the lower court misapplied Kentuckys specific gambling devices law in order to provide a rationale for permitting the seizures. iMEGA also argues that Kentuckys actions violate the Commerce Clause of the US Constitution, and that Secretary Brown lacked the authority to initiate the seizure action in the first place.

This matter has generated concerns across the online world about abuse of governmental power, said Brennan. Kentucky is opening the door for any government - state and local, foreign and domestic - to use what amounts to blackmail to achieve its ends. If this precedent is allowed to stand, its not hard to imagine a government like China utilizing this kind of seizure power to prevent free media, like the New York Times, from reaching their citizens.

None of the 141 domain names are owned by individuals or companies are located in Kentucky. Gov. Beshear claimed the Internet gambling sites were sapping money from the states own gambling businesses, calling them leeches on our community.

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In fact, it is EASY, because China have already done this to Google, but only in the sense that Google must "rig" results from searches that originate from Chinese IP addresses so that "certain websites" fail to appear, however relevant they are. This would probably include the New York Times, however, any direct blocking has to be done through local ISP's in China, and without any cooperation whatsoever from the New York Times. If China followed the Kentucky lead however, they could REQUIRE that the New York Times itself implemented measures to prevent those Chinese citizens that were savvy enough to go around the ISP blocks from seeing all that controversial material about Tibet & the Olympic Games, or face, in effect, closure.

I am pretty sure some Chinese officials are watching this case closely, to see if any precedents set can be useful to China. It would certainly shift the burden of expense for this censorship from the Chinese government, to the Western governments that produce the material, even IF it was ineffective in achieving it's goals.
 
BRILLIANT BILL, NOT!!!, NARCISSISTIC,QUI!!!

Maybe not their true intent.....still hard to pinpoint the political posturing but Yung, former heavy Republican supporter, all of a sudden turned Democratic supporter after aquiring land in Northern Kentucky for the sole purpose of building land based casino(s), well nevermind me but you may find some foreshadowing in the last sentence of the following:

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"Big day for Beshear buddy Bill Yung
The next time Governor Steve Beshear starts talking about how rosy things are in Indiana, West Virginia, and Illinois because they have legalized casino gambling, remember this story......................................................"

"Frequent readers of KyPolitics.org will remember that Columbia Sussex is owned by Bill Yung, the million dollar contributor to the Bluegrass Freedom Fund 527 which spent a total of $3.1 million last year in an effort to elect Steve Beshear as governor. The Republican Party of Kentucky later filed a complaint with the Kentucky Registry of Election Finance regarding the Beshear campaign's alleged coordination with the Bluegrass Freedom Fund............................................................................................
"

"File this one away for next year when Beshear decides to start talking about Kentucky casinos again".

www.pressofatlanticcity.com/180/story/326688.html

NJ Supreme Court ruling clears way for Tropicana bankruptcy auction
By DONALD WITTKOWSKI, Staff Writer, 609-272-7258

Published: Tuesday, November 25, 2008


ATLANTIC CITY The New Jersey Supreme Court upheld the states decision last December to strip Tropicana Casino and Resorts former owner of its license and put the troubled gaming hall up for sale.
The ruling today removes the last legal impediment holding up the sale. A state-appointed conservator who has been overseeing the casino since Tropicana Entertainment LLC lost its license is planning a bankruptcy auction in coming weeks.

Linda M. Kassekert, chair of the New Jersey Casino Control Commission, said efforts to sell Tropicana will resume immediately. She noted that the court ruling came one day after the commission approved the hiring of additional legal advisers to help the conservator take the casino into U.S. Bankruptcy Court.

Cordish Co., a Baltimore-based commercial developer branching out into the casino industry, has been designated as the leading bidder for Tropicana. Cordish has offered $700 million in cash and notes or $575 million in an all-cash deal. Although Cordish is the front-runner, other would-be buyers will have an opportunity to submit higher bids in the bankruptcy sale.

Tropicana Entertainment clung to the hope that New Jerseys courts would block the sale and reinstate its license. However, a state appeals panel unanimously ruled against the company in July, followed by the Supreme Courts decision on Tuesday to finish the yearlong legal saga.

Among other things, Tropicana Entertainment claimed it was unfairly denied a license because of alleged political interference by Senate President Richard Codey, D-Essex. Codey wrote a letter last year urging the Casino Control Commission to allow a casino labor union, which opposed Tropicana, to participate in the licensing hearing.
But the commission ignored Codeys letter and insisted it had no influence on its decision to deny the license. The Supreme Court appeared to agree, not even mentioning Codeys letter in its ruling.

We are pleased with the courts ruling, Kassekert said. It reinforces our position that the decision was clearly based on the record developed before us and not on any external factors.

In denying the appeal, the high court reiterated the reasons cited by the commission when it yanked Tropicanas license. The commissioners were angered by Tropicanas defiance of the regulatory process and its wholesale layoffs that left the casino understaffed and dirty. Tropicanas failure to create an independent audit committee, as required by New Jerseys Casino Control Act, was another major factor for denying the license.

The Act required Tropicana Atlantic City to have an independent audit committee in place on its first day of operation. However, Tropicana did not submit an acceptable independent audit committee proposal until approximately six months later, the Supreme Court said.

Scott C. Butera, Tropicana Entertainments chief executive officer, acknowledged that the appeal was a long shot. He said the company was surprised that the Supreme Court agreed to hear the case following the appeals courts unanimous ruling against Tropicana. Although Tropicanas legal fight has dragged on for a year, the Supreme Court issued its ruling with extraordinary speed, coming just eight days after it heard oral arguments.

Despite the setback, Butera said Tropicana has not yet given up on Atlantic City. Separate from its court battle, the company will continue with a petition that asks the Casino Control Commission to give it back operating control of the casino.

Our primary strategy is still to pursue our petition, Butera said. Weve been working hard to prove that were a licensable company, with a new board and new management and Bill Yung not being involved.

Tropicana Entertainment argues it deserves a second chance at operating the casino because of a corporate restructuring that removed the controversial Yung as CEO and from the board of directors. Yung was largely blamed for Tropicanas downfall last year by slashing its work force and resisting regulatory requirements.

Yung continues to own Tropicana Entertainment, but has signed an irrevocable agreement to surrender his equity rights.
The companys attempts to distance itself from Yung appeared harmed when Yung unexpectedly showed up when the Supreme Court heard oral arguments Nov. 17 on the appeal.
We were surprised, Butera said of Yungs appearance at the Supreme Court. But the appeal was something that was started when he was still involved. He had a personal interest. But he has nothing to do with our company or Tropicana Entertainment now.

For complete coverage, see Wednesday's editions of The Press of Atlantic City.
 
the Governor's strategy seems to work out ..

Absolute and Ultimate have started to IP-block Kentucky customers this week.
I haven't seen a definite list of operators (from the initial 141 list) which block now KY customers, but this list is certainly growing fast, so all in all in works out for Beshear and his "sponsors".

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Absolute and Ultimate have started to IP-block Kentucky customers this week.
I haven't seen a definite list of operators (from the initial 141 list) which block now KY customers, but this list is certainly growing fast, so all in all in works out for Beshear and his "sponsors".

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As far as poker goes here are the ones that have blocked Kentucky players:

All Prima/Microgaming
Cake Poker Network (Cake, Sportsbook.com, Red Star etc.)
Merge Gaming Network (Carbon Poker and friends)
Cereus (Absolute/Ultimate Bet)
Bugsy's Club

I think that is it for now. Full Tilt says that ae fighting this all the way as they feel this judge has no jurisdiction in Alderney.
 

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