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Online Casino News - September, 2008

Kentucky Demands Compensation From Golden Casino



  Seed Newsvine

by Elizabeth Nguyen, News Staff Writer

September 29, 2008

If there has ever been a case of "internet controversy" in the courtroom, consider the online gambling industry a main topic of interest. Especially these days in the U.S., where the fledgling Unlawful Internet Gambling Enforcement Act (UIGEA) gets talked over daily by members of Congress, controversy and online gambling often hand in hand. Only now this controversy isn't being contained on the Federal level.

For instance, take the State of Kentucky, where State officials have opened a court case against a small but powerful circle of online casinos, including the popular Golden Casino. Seeking to have these sites ordered to forfeit their 141 online gambling domains (registered through GoDaddy), as well as some retroactive financial compensation, some would say that Kentucky doesn't have solid ground to stand on.

Kentucky Justice Secretary J. Michael Brown said the case is warranted by a 1974 law that allows the State to seize illegal gambling devices. And in this instance, he claims the domain names held by online entities like Golden Casino are illegal gambling devices. Lawyers representing the defendants, however, are seeking a continuation of their brief to County Judge Thomas Wingate in an effort to show that court has no jurisdiction in such matters and that the case should be dismissed.

Powerful online gambling activists like the Interactive Gaming Commission (IGC), Interactive Media Entertainment and Gaming Association (iMEGA) and Poker Players Alliance (PPA), however, have filed briefs of their own, including a Motion to Dismiss. But whether or not the case does get dismissed largely depends on the legal standing of those involved. And this is where things get very sticky.

Lawyers for Kentucky say that in order for the defendants to have legal standing, the owners of the online casino domain names must be named and identified. However, lawyers for the defendants haven't said a word...just yet. Judge Wingate went on to say that lawyers would have to "eventually pony up" and divulge the names of the online casino owners. And so long as they do, and provide the financial compensation Kentucky is expecting, the State will not shut down the domains.

I suppose you could call that bribery at it's best. And apparently it's working. The two sides are said to be in talks and negotiations right now. It appears the best case scenario for Golden Casino is that they pay up a hefty fee to the State and abide by a cease and desist order of doing business with Kentucky residents. Golden Casino has said that current account holders should not panic nor worry, and that all funds are safe and protected.



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