US State Seizes Online Gambling Domain Names

October 13, 2008

Recently the state of Kentucky has moved to seize the domain names of 141 online gambling sites. The move has sent shockwaves throughout the gambling and internet community because it could set a dangerous precedent. Attorneys for the governor of Kentucky is arguing that they have the right to seize the domain names because they are “gambling devices” like a slot machine which can be seized under state law. Attorneys for the governor of Kentucky are arguing that they have the right to seize the domain names because they are “gambling devices” like a slot machine which can be seized under state law.
The problem with this decision is that the online casinos have no physical presence in Kentucky and neither do their domain registrars or their website hosts.

This decision impacts the international quality of the internet and the Kentucky court seems to forget that domain names aren’t merely a U.S. asset. The spokeswoman for the state of Kentucky said that their ultimate goal is not to take away the domain names but to force online casinos to block any potential users in Kentucky.

At a hearing earlier this week, trade groups, domain registrars and gambling advocacy groups voiced their concerns and told the judge to dismiss the case outright. One of the main arguments against the state is that this precedent could harm free speech on the internet throughout the globe and not just in the state of Kentucky. Michael Collins, the spokesperson for the Internet Commerce Association said “What’s to keep Iran or China from doing the same thing? Yet, even China – which tries very hard to control the Internet its citizens use – hasn’t tried to do what Kentucky is trying to do here.”

The final decision in the case could affect internet laws globally and even the management of ICANN.