Online casinos are the center of focus once more in the Commonwealth of Kentucky.  This week we officially entered round three in the Kentucky domain name seizure case.  The matter has gone all the way up to the Supreme Court.  This week, the court heard the 90 minute arguments from both Kentucky and the Interactive Media Entertainment and Gaming Association.  An outcome for the case is expected to be issued in the next 2 to 4 months.

The case has been in the works for well over a year now.  The first step was when Secretary of the Justice Michael Brown brought civil action against online casinos and sought to seize their domain names.  His case was based on the Kentucky’s laws against gambling devices.  He was successful in the Franklin Circuit Court.

Victory did not last long for Kentucky.  Interactive Media Entertainment and Gaming Association successfully overturned the decision in the Kentucky Court of Appeals.  They argued the online casinos could not be considered gambling devices.

The narrow perspective of the Kentucky government could have very dangerous consequences for the future of ecommerce.  If a local government has the power to seize the domain name of an international business based on local laws, there would be no safe haven for any business on the internet. 

Unless the Supreme Court in Kentucky is filled with dangerously short sighted judges there is little chance for Kentucky to succeed.  However, it must be acknowledged that they did manage to win the first round.  Ecommerce could go through some serious changes in the next few months.