Something’s Just Not Adding Up with the Kentucky Domain Name Case: "One of the strangest stories I’ve covered over the last several years has been the attempt by the state of Kentucky to seize 141 domain names belonging to internet gambling companies. The state was clearly upset that offshore sites were taking revenue from their casinos and racetracks and they really had no way of stopping their citizens from betting with those sites. After all, there is nothing in U.S. federal law or Kentucky state law that prevents someone from placing a bet, offshore or not. To combat the growing interest in offshore wagering by Kentucky residents, in 2008 Governor Brashear issued a warrant to seize the domain names of 141 sites including many stalwarts like FullTiltpoker.com, Pokerstars.com, WSEX.com and DoylesRoom.com. The reasoning behind the seizure was interesting but also inane. Without going into great detail, the state’s logic was that offshore websites are operating illegally under the Wire act, the Travel Act and possibly the UIGEA. As is the case with any illegal gambling operation, the police can seize all gambling devices used to process those bets. So, if a gambling den is raided in Kentucky, the government has the right to seize slot machines, roulette tables, blackjack tables, cards or money that is being used in the commission of the crime. Obviously the state can’t seize any gambling devices of the offshore sites since they are beyond their reach, nor can they close down the websites since they are operating legally in the jurisdiction where they are licensed. Consequently, the state made the argument that the domain name is a gambling device and subject to seizure."
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