Kentucky Domain Name Seizure in News Again

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The Kentucky domain name seizure case has reared its head once again. The saga began in August 2008 and has had more twists and turns than a rivulet streaming down a mountain slope. The main protagonist remains the same, Judge Thomas Wingate.

On March 8, 2012 Wingate signed the forfeiture order on 132 Internet gambling domain names. In the original order there were 141 domain names. 9 online gambling operators have not been left off. They are already embroiled in indictments and other proceedings with the United States Department of Justice and therefore excluded from the final order. These domains are Full Tilt Poker, PokerStars, Absolute Poker, Ultimate Bet, Doyles Room, True Poker, Bookmaker and Bodog Life. The only one that does not fit into this pattern is the leading software provider Microgaming.

The order issued by Judge Wingate lists 12 points. The order begins by noting that none of the online gambling operators made any attempt to demonstrate that they installed and implemented software or other devices to geographically block users from inside the Commonwealth of Kentucky from their illegal, unregulated online gambling sites. One of the issues raised in the appeals and counter appeals that ensued over the years was that at least one of the real domain name owners should come forward and identify himself. Though iMEGA representing the domain names has claimed that they have complied with this, Judge Wingate has ruled otherwise. His order states, "No party has appeared with standing to contest the forfeiture or submit evidence. The Court finds that no lawful owner or claimant of the domain defendants has been identified or is identifiable." The judge refers to the original proceedings holding that sufficient evidence had been produced to prove that domain names are illegal gambling devices.

The last three points of the order require the state of Kentucky to serve to VeriSign and each domain a copy of the order. Then VeriSign will have to immediately transfer ownership of each domain name to the Commonwealth of Kentucky. Each domain name will be directed to the IP address given by the state of Kentucky. The domain names will be unlocked and unencumbered so that the state can then proceed as required.

Once again the state of Kentucky and Judge Wingate has acted in haste to preempt the natural proceedings in the matter. The Supreme Court of Kentucky in March 2010 had sent the matter back to the trial court to ascertain that there was at least one domain name owner who had come forward and identified himself. In September 2011 Judge Wingate ruled that no such domain name owner had stepped forward. In November 2011 the representatives of the domain name owners filed an appeal against the September order, the hearing for which was slated for April 24, 2012.

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