Victory for Domain Owners in Kentucky

LOUISVILLE — The Kentucky Court of Appeals has enacted an order prohibiting the Franklin Circuit Court from seizing scores of Internet domain names.

The move hopefully brings to an end the democratic Governor Steve Beshear's effort to seize the domain names of 141 gambling-related websites as a protectionist move to bolster the state's gaming industry, which centers on horse race wagering.

Beshear prompted Franklin Circuit Judge Thomas Wingate to issue the widely contested seizure order, which never had any real effect as the state cannot control a website's content until the names are forfeited to the state.

"We have Kentucky exercising worldwide jurisdiction," attorney William E. Johnson said of the proceedings, which have seen friend-of-the-court filings by the Electronic Frontier Foundation, the Center for Democracy and Technology, the American Civil Liberties Union of Kentucky, Network Solutions and The Poker Players Alliance.

According to Erik Lycan, an attorney representing the state, gambling sites are engaged "in a massive offshore criminal conspiracy [masquerading] as a legitimate business."

According to Larry Walters, an attorney representing Golden Palace in the underlying case, the site owners were obviously quite pleased with the court's decision.

"The parties raised so many legal and constitutional defects in the Commonwealth's position, that we were not sure which one would bring down the house of cards," Walters told XBIZ.

One issue at hand was whether or not domain names can be classified as gambling devices, since they do not meet the legal definition of being a manufactured electronic device and as such covered under Kentucky's 1974 gaming statutes which predate the commercial availability of the Internet.

"The Appellate Court decided to focus on whether domain names could constitute 'gambling devices' under Kentucky law," Walters said. "Not surprisingly, it found that they did not and therefore could not be seized."

Thus, the Constitutional conundrums were avoided.

"A basic principle of constitutional law requires the courts to avoid ruling on constitutional questions if there are other grounds on which to resolve a dispute," Walters noted. "In this appeal, the court avoided the difficult constitutional issues relating to Freedom of Speech and the Commerce Clause by honing in on the 'gambling device' issue, and shutting down this ill-conceived prosecution."

During a hearing in the appellate court last month, two of the three judges reportedly expressed skepticism as to the case's merits; with Judge Jeff Taylor raising concerns over how the government could seize domain names without prosecuting the website operators and giving them their day in court.

"We'll have to wait and see whether the Commonwealth decides to pursue this case any further, but for now, our clients are pleased with the result," Walters concluded.

View Document

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Hentaied Founder Romero 'Mr. Alien' on Fetish, Fantasy and Finding Order in Chaos

A sharp sting pierces the woman’s skin. Something foreign slips beneath the surface. Eggs, maybe. She doesn’t know it yet, but soon her body will become a vessel, a hive, a source of contamination.

AEBN Publishes Popular Searches for July, August

AEBN has published the top search terms for the months of July and August from its straight and gay theaters in all 50 states and the District of Columbia.

The Guardian Devotes Feature Article to XBIZ Amsterdam

British newspaper The Guardian sent a reporter to cover XBIZ Amsterdam earlier this month, resulting in a lengthy article about the annual European adult industry conference.

Pineapple Support Taps Char Borley as Brand Ambassador

Pineapple Support has named Char Borley as its newest brand ambassador.

Michigan Legislators Propose Online Porn Ban

Michigan lawmakers have introduced a bill that would make it illegal to distribute pornography via the internet in the state.

Florida AG Sues Aylo, Segpay Over State AV Law

Florida Attorney General James Uthmeier filed lawsuits against Aylo and Segpay on Monday with the 12th Judicial Circuit Court of Florida for noncompliance with HB3, the state's age verification law.

Colombian Court Sides with Performer Esperanza Goméz Over IG Suspensions

Colombia’s Constitutional Court last week ruled in favor of adult performer Esperanza Gómez in her legal battle against Meta over repeated suspensions of her Instagram account.

Missouri AG Announces Age Verification Rule to Take Effect Nov. 30

Newly appointed Missouri Attorney General Catherine Hanaway announced Friday that the state's recently approved age verification regulation for adult websites will go into effect on Nov. 30.

Aylo, Woodhull Freedom Foundation to Tackle Online Censorship in Virtual Seminar

Aylo and Woodhull Freedom Foundation will co-host a virtual panel addressing online censorship on Sept. 30.

Severe Sex Films Relaunches Site Through YourPaysitePartner

Severe Sex Films has relaunched its official website through YourPaysitePartner (YPP).

Show More