David Brickman (yet again)
I managed to get hold of someone within the Governor's office who confirmed a few things. The government isn't looking for any sort of taxation regarding online casinos. They just want to drive the online casino industry out of Kentucky and the the residual damage doesn't concern them. The official stance as far as the Kentucky Governor's office is concerned the online casino industry is completely illegal. They are concerned about these foreign online casino operations "preying" on their citizens.
Regarding the protection of the horse racing gambling industry. It was fairly obvious that this is their intent. Kentucky based racetracks do take online bets. It wouldn't be a surprise if they started taking more than just horse racing bets in the near future. This whole case has nothing to do with the law, just greed...
David Brickman
VP Player Affairs
Jackpot Factory Casino Group