Tunr in Kentucky Domain Name Seizure

March 21, 2010 | News Category: Gaming Law

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After much waiting for the Kentucky Supreme Court’s decision regarding the attempted online gambling domain name seizure case, a ruling has finally been given, however, it was not the ruling that either party had expected.

The court did not hand down a ruling as to which party had won the case, but rather ruled that on a legal technicality; iMEGA (Interactive Media Entertainment & Gaming Association) and the IGC (Interactive Gaming Council) did not have the legal standing necessary to pursue the case. The reason for this is that a domain name is not considered a legal entity, although the owner of a domain name is considered to be a legal entity. Essentially, the Kentucky Supreme Court explained that in order for the case to have merit, one of the owners of one of the 141 online gambling domain names in question will need to step forward.

Most thought that there was no question as to whether the gambling industry would win the battle against the state of Kentucky, which they may well do, as long as one of the parties concerned will in fact step forward.

Part of the ruling passed down from the Supreme Court read: "Although all such arguments may have merit, none can even be considered unless presented by a party with standing. No such party has appeared at the original proceedings in Franklin Circuit Court, the writ petition at the Court of Appeals, or on the appeal here to this Court."

The court continued to note, “In fact, nothing is known about their members, other than their attorneys' vague assertions they represented 'some' of the registrants.”

"Through their unwillingness to identify any of their members, iMEGA and IGC failed to meet this burden. As such, iMEGA and IGC lack standing and, therefore, their writ petition should have been denied." It is clearly understood, and quite fair enough that the Supreme Court has ruled this way. However, it is also understandable that the online gambling domain name owners did not want their names directly connected to the case. The reason the domain name owners did not want to step forward in the past is because they feared that there could be other criminal proceedings against them if the ruling was not in their favor.

It seems fairly clear that the court agrees with and supports the arguments that have been laid out and argued by the online gambling industry, although they can not rule in the favor of parties that have not been properly registered.