Chalk one up for poker in Kentucky. A voice of reason came from the Kentucky Court of Appeals today, thanks to the extraordinary efforts of the Interactive Media Entertainment & Gaming Association (iMEGA).

Judge Thomas Wingate previously ordered a December 3rd forfeiture hearing for the 141 gaming-related domain names that Gov. Beshear wanted seized, but the appeals court has stayed that hearing in order to conduct its own hearing on December 12th in Louisville, during which it will consider iMEGA’s petition to overturn Wingate’s original ruling. The courts will hear the iMEGA petition in conjunction with one filed by the Interactive Gaming Council (IGC), both contending that the lower court did not have the jurisdiction to order the domain seizures in the first place.

“We’re please that the Court of Appeals has given us the opportunity to challenge these seizures,” said Joe Brennan Jr., iMEGA’s chairman. “The commonwealth has tried to take these domains for their own financial gain, violating Kentucky law, exceeding their jurisdiction, and setting a terrible precedent in the process.”

Arguments are being heard today in the Franklin County Circuit Court in Kentucky regarding the attempted seizure of 141 gaming-related domain names.

At the request of Governor Steve Beshear, the Commonwealth of Kentucky filed a civil action on September 18, 2008 to order sites like Full Tilt, PokerStars, and Doyles Room seized if they didn’t willingly forfeit their domain names, and they would be transferred to the Commonwealth. The order claimed, as did Beshear in his press conference, that the internet domains were “used to promote, conduct, and/or advance illegal gambling within the Commonwealth of Kentucky.” After a continuance, the hearing is today.

According to Gambling911, the Commonwealth of Kentucky seized some of those sought-after domain names last night, including UltimateBet.com, DoylesRoom.com, and CakePoker.com. The three sites are still running as usual, but the Commonwealth could reportedly stop them at any time. Holy Massacre of the Constitution! No need for panic yet….

Attorneys defending the sites, and even some simply standing up for the rights of online poker like iMega, are in court right now trying to stop the madness. Since Dan is on a Clonie-stalking cruise in the Bahamas business trip and I am holed up in my L.A. apartment, we were unable to get to Kentucky for the hearing today. But the PPA is there and will provide updates, and Gambling911 is live blogging from the courtroom.

Updates here as they become available…

Governor Steve Beshear’s attempt to seize 141 gaming-related domain names is certainly not over in Kentucky. The Franklin County Circuit Court will hold its next hearing on the case on Tuesday, so the PPA is working with other organizations to hold a summit on Monday to put rational heads together and devise a plan to save online poker.

The emergency summit is actually being called by the Bluegrass Institute, an independent research and educational institution seeking free market solutions to Kentucky’s problems. The Bluegrass Institute will be joined by the Poker Players Alliance (PPA), Internet Commerce Association, Interactive Media Entertainment & Gaming Association (iMEGA), and Americans for Tax Reform.

When: Monday, October 6th at 1pm
Where: Capital Plaza Hotel in Frankfort, 405 Wilkinson Blvd

According to the PPA’s press release, the purpose of the summit will be as follows:

While the primary focus of the state’s action is online poker, the ramifications extend much farther into the entire realm of online commerce. This is a matter of the gravest importance, and the Bluegrass Institute is urging anyone with an interest in protecting internet freedom to join the protest against this egregious action.

Does Kentucky have jurisdiction to seize these domain names? What are the national and international ramifications should Kentucky succeed in this seizure order? What threat does this action make to the future of internet freedom and technological innovation? Do domain names fit the Kentucky statutorily definition of a gambling device?

Back from Barcelona and feelin’ feisty, we revisit the stupid stunts of the Governor of Kentucky in a not- so-respectful way. But don’t forget there’s other news, too… including updates on Barney Frank’s PSPA Bill which was passed a few weeks ago. Also, the status of the continuing iMEGA court case. Lastly, a brief musical look back at the CAP Convention… this show is a real “hoot”! LOL!

Been a couple of news items over the last week or so regarding the Unlawful Internet Gambling Enforcement Act of 2006. You remember the UIGEA. You don’t? Look over yr shoulder. It’s that big black cloud over there, heading this way . . . .

First, a U.S. District Court Judge threw out the Interactive Gaming Media Entertainment and Gaming Association’s case against the U.S. government. You might remember iMEGA had attempted to have the UIGEA’s implementation postponed until it could be determined whether or not the law was unconstitutional. (They had some other points in there, too.) The case was dismissed, but iMEGA was recognized as having “legal standing” and so will surely continue the fight.

Meanwhile, we learned this week what the American Banking Association had to say about the proposed UIGEA regulations. Recall that back in October, the feds presented their proposed regulations & asked for comments. The comment period ended in mid-December, and now the Secretary of the U.S. Dept. of the Treasury and the Chairman of the Board of Governors of the Federal Reserve System are considering those comments as they prepare to “finalize” the UIGEA.

The abridged version: the ABA thinks the UIGEA is not A-OK. Gives the banks too much to do — more than they can feasibly handle. In fact, the ABA believes the UIGEA will place most banks in what they call a “compliance trap” and thus do more to hurt the American payments system than it will do to stop folks from gambling online. Read Haley Hintze’s PokerNews article & also check out the full text of the ABA’s comments over at Kick Ass Poker.

And for more from those comments to the UIGEA regs — including some of what the “webmaster of the popular blog Pokerati.com” had to say about ’em — check out Jason Kirk’s article over at PokerListings summarizing them all: “Stakeholders sound off on UIGEA regulations.”