Domain Name Seizure Decision Overturned in Kentucky

The Kentucky Court of Appeals has overturned the Domain Name Seizure Order which I discussed in my previous post. To recap, last year a court in Kentucky had seized 114 domain names from several online gambling sites.  The lower court had ruled that the domain names were a “gambling device” and therefore could be seized under Kentucky law. The ruling was a shock to gambling and internet communities.
Recently, a higher court overruled this decision holding that domain names do not fit the definition of a “gambling device” as set forth in the statute: “It stretches credulity to conclude that a series of numbers, or Internet address, can be said to constitute a “machine or any mechanical or other device…designed and manufactured primarily for use in connection with gambling.”

The court did not rule on whether the seizure violated any Constitutional provisions. The ruling suggested that the statute could be changed to include domain names as an instrument of gambling, although even if it does Kentucky will still be unlikely to seize domain names. Not only is such actions likely to violate Constitutional law but also their courts lack the inherent authority to force out of state and foreign registrars to hand over control of the domain names.  Since the ruling Kentucky has filed an appeal but the most recent decision is likely to be upheld.