A three-judge court panel in Kentucky is weighing whether the state can seize website domain names from online casino operators who do not block access to the state’s residents.

The case goes back to October when the state was granted permission to take 141 domain names under a Kentucky law that allows the seizure of illegal gaming devices. Arguing that online gaming is illegal in the state, Governor Steve Beshear moved forward with his attempts to take the domain names.

Attorneys for the affected sites argued that the state lacked the jurisdiction to take domain names registered in different countries. They also said that the domain name is not ipso facto a gambling device.

The appeals court panel will decide whether Kentucky has the jurisdiction to seize the websites.

William Johnson, who represents five of the websites, said Kentucky’s laws do not spell out that the state can seize domain names.

But Eric Lycan, who represented the Kentucky Justice Cabinet, said the online casinos are part of a “massive, global, offshore criminal enterprise” that knowingly violates the law because they do not think there will be any consequences.

“They are doing this because they don’t think anyone can catch them,” Lycan said.

By GGB Staff

Staff writers for Global Gaming Business magazine. Las Vegas, Nevada.