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January 25 - The verdict that everyone was waiting for in Kentucky was finally given this week, when the Appeals Court ruled on the case of Governor Steve Beshear's attempts to take over the domain names of 141 gambling sites.
In September 2008, Judge Thomas Wingate ruled that the state of Kentucky could seize the domain names of sites that included Absolute Poker, Ultimate Bet and several Microgaming powered online casinos. The forfeiture hearing was due to be signed in December 2008, but was postponed after several interested parties took the case to a higher court - the Kentucky Appeals Court.
The Appeals Court, in a 2:1 majority, ruled that the lower court's decision to allow Beshear to seize the domain names was not permissible and was thus overturned.
"It stretches credulity to conclude that a series of numbers, or internet addresses, can be said to constitute a 'machine or any mechanical or other device ... designed and manufactured primarily for use in connection with gambling," said Judge Michelle Keller, speaking for the majority. "We are thus convinced that the trial court clearly erred in concluding that the domain names can be construed to be gambling devices subject to forfeiture."
A member of the law team representing the Interactive Gaming Council, a group that filed an appeal on the lower court's ruling, praised the Appeal Court's decision: "We are humbled by this decision and by the overwhelming support received from internet businesses and free speech organizations everywhere," said Jeff Ifrah. "The Court of Appeals has now corrected a fundamental misunderstanding by the trial judge in this proceeding of the nature of the internet and the legality of online poker in Kentucky."
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