The Kentucky domain name seizure case has a verdict, and it’s good news! Also, not such good news for the online poker room Cardspike, as we finally get closer to the truth, and how Casino Affiliate Program’s Lou Fabiano may be connected.

A look at the non-poker media’s take on the Kentucky case as it moves through The System:

From the subscription newsletter blog Daily Online Examiner …

By Wendy Davis, Wednesday, January 21, 2009
Kentucky’s Move To Kill Online Gambling Squashed — For Now

In a closely watched case, an appellate court in Kentucky rebuffed the state governor’s attempts to shut down online gambling. But, while the case attracted attention from a wide range of outside groups who made all sorts of lofty constitutional arguments, the judges ended up deciding the case on a technicality.

The court ruled 2-1 that the government couldn’t confiscate domain names of 141 out-of-state gambling sites because the 1974 forfeiture law only applied to gambling “devices,” like roulette wheels.

“It stretches credulity to conclude that a series of numbers, or Internet address, can be said to constitute a ‘machine or any mechanical or other device,’ ” judge Michelle Keller wrote.

The dispute started late last summer, when the state hired a law firm to bring proceedings against online gambling companies. At the time, Kentucky Gov. Steve Beshear made no secret of his protectionist motives. He said he wanted to shutter the gambling sites as part of an effort to preserve horse racing, which he termed the state’s signature industry.

As news of the court showdown spread, a wide range of groups questioned whether one state could legally reach beyond its borders to claim jurisdiction over sites with a global reach. Outside parties — ranging from trade organizations like the Interactive Gaming Council and the Internet Commerce Association to civil rights groups like the Electronic Frontier Foundation and ACLU — weighed in on behalf of the Web sites.

The groups argued the law was unconstitutional for a host of reasons, including that Kentucky had no right to block sites visited by a worldwide audience.

While the appeals court dodged those issues for now, they’re bound to recur. If Kentucky rewrites its laws to specifically include domain names, the court will again be faced with determining how far one state can go to police the Web.

See what others are saying on the Online Examiner blog.

I guess it kinda depends how you look at it. Some might say a 66-33 percent victory is pretty dominating. Others might see winning by just one vote as a tiny margin of error.

The PPA just put out a statement, regarding actions yesterday in Kentucky that shows the Governor has no intention of backing down on his desire to seize control of 141 gambling-related internet domains located outside of Kentucky, and America for that matter. Yee-haw! I’m tellin’ ya … it’s off to the Supreme Court we go on the way-bigger-than-poker issues in play here.

(Anyone wanna agree on a bet over the internet and transfer funds via PayPal?)

Though I’m not totally sure, I think Kentucky higher courts work like volleyball, or tennis after deuce. If you can win two points in a row, you win outright. The state of Kentucky won the first case, and had we lost our first appeal, we’d be dead. But we won … so now it’s their serve, and if we win that — the appeal to the appeal — I think then they can go no higher (can someone confirm this?). But if they win, then we can appeal to the state Supreme Court, yadda yadda.

Anyhow, John Pappas taunting Kentucky gov. Steve Beshear — reminding him he has an election in the not-too-distant future, and a plausibly disgruntled citizenry to answer to:

PPA Statement on Commonwealth of Kentucky Appeal of Domain Name Seizure Ruling

WASHINGTON, DC. (January 21, 2009) – John Pappas, executive director of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide, today issued the following statement regarding the appeal filed by the Commonwealth of Kentucky in light of yesterday’s ruling by the state court of appeals overturning a lower court decision allowing the Commonwealth to seize Internet gambling domain names.

“Kentucky residents should be outraged that the Commonwealth is investing another minute of time and another dollar of scarce resources in this quixotic case. The appeals court’s sound rejection of the Commonwealth’s case should have ended this legal debacle in its tracks. Unfortunately, the Governor and the hired-gun attorneys want to drag their ultimate defeat to another venue at the expense of Internet freedom and the rights of law-abiding Kentucky poker players.”

A copy of the Commonwealth’s appeal can be found at www.pokerplayersalliance.org.

BTW, for those in need of a lexicographic refresher, here’s a definition of “quixotic”.

A three judge Kentucky Court of Appeals panel ruled today in a 2-1 decision that the state’s attempt to seize 141 internet gambling domain names could not take place. More details can be found at Poker News Daily and the full decision on the Poker Players Alliance website. It’s expected for the state of Kentucky to file an appeal, which would move the matter to the Kentucky Supreme Court, in the very near future. More news as it becomes available.

We continue our look into Cardspike’s alleged connection to Casino Affiliate Programs. Plus, indusry news that could tie online gaming to terrorism as we wait on an important decision in Kentucky!

Poker is having its day in court, that’s for sure. One case getting press all over South Carolina comes from a busted $20 tourney being held in a private home — raided in 2006 by heavily armed police — where 5 of the 25 arrested have refused generous plea bargains and are trying to persuade a presumably non-poker jury that poker Texas Hold’em is indeed a game of skill. A judge has ruled that the defendants do indeed have the right to present witnesses and evidence to make to support this claim. A court date is expected to be set for later this winter.

More here (Charleston.net) and here (Up for Poker).

This is exactly how California became California, poker-wise — it took arguments about skill in the courts to pave the way for all the great poker there. I don’t know the details of the cases, but Mike Caro was one of the guys who testified, bringing charts and graphs to show statistics of specific games — hold’em, Stud, and 5-card Draw, I believe.

Meanwhile, also going on last week and drawing lots of non-poker attention (Lexington Herald-Leader, Business Week, Physorg.com) … a Kentucky Court of Appeals will attempt to begin to start to decide: Does a single US state have the right to venture across its own borders to seize internet domains of businesses based in Costa Rica and run out of a protected Indian nation in Canada … and who will get to hold onto these domains while the courts figure it all out. The court will supposedly be making its decision in January, and judicial facial tells suggest poker is leading in this court 2-1.

You know, the evidence thing has me thinking … one of the hardest things for Kentucky to prove in their case will be that online gambling does actually hurt regulated Kentucky gambling interests. You don’t have to look much further than the WSOP to present actual numbers refuting this claim. So what evidence will Gov. Beshear and the state be able to present — they have the burden of proof, after all — that suggests the opposite? I don’t think it exists, at least nothing stronger than what the poker side could present.

From APCW.org:

So, last week 60 Minutes decides to “expose” our industry with half-truths and spin. This week, it’s our turn to expose them! Also, get a different insite on the Kentucky domain seizure case. Plus an update on the Gambling Wages Challenge!

Tokwiro Enterprises announced that it has chosen to follow the Kentucky court order and block Kentucky residents from accessing Absolute Poker and UltimateBet. In an explanation, COO Paul Leggett said, in so many words, that the purpose it to protect the domain names for the entirety of its customer base.

Being anxious about following the letter of the law when trying to rebuild a reputation is one thing, but could this be jumping the gun a little? The case is currently on hold due to the appeal process, and the deadline for blocking Kentucky residents has been postponed until the appeals court hears the petition, which is scheduled for December 12th. Today is December 2nd. Just sayin’.

The entire press release from Tokwiro is as follows:

TOKWIRO BLOCKS ACCESS BY KENTUCKY RESIDENTS
TO ITS ONLINE POKER SITES

Customers Connecting from IP Addresses in Kentucky Will Be Unable to Play on Absolute Poker and UltimateBet Sites

MONTREAL, CANADA (DECEMBER 2, 2008) — Tokwiro Enterprises ENRG (Tokwiro), the owner of the Absolute Poker (AP) and UltimateBet (UB) poker sites, announced today that, in order to fully comply with the Franklin County (Kentucky) Circuit Court’s recent orders, it is restricting access to Tokwiro’s sites by Kentucky residents.

More…

A few people have asked me WTF I’m talking about saying that November 2008 will go down as an historical month where everything changes/d. To spell it out, you have:

The November Nine — historic simply as it pertains to the conclusion of a single not-so-little tournament that seems to be the barometer for all things related to the poker industry.

Midnight Rule-push for UIGEA Regs — we’re just one of 100 single-issues affected by the Bush administration’s attempts to party it up like frat boys and trash the joint before checking out … but regardless, it means we have a whole bunch of additional clean-up to do.

60 Minutes/Washington Post Exposés — whether it’s determined to be fair-and-balanced good-for-poker coverage or a damning hatchet job hacked with a double-edged blade of lies … the Thanksgiving weekend stories represent the official exposure of the online poker biz, hairy warts and all, to the non-poker world.

Clonie Gowen vs. Full Tilt Lawsuit — a loyal soldier turns on her poker-biz commanders, with attempts to air grievances in American court threatening to bring the multibillion-dollar operations of a super-private jurisdictionally challenged business into the public domain. While FTP reps actively petition the Feds to let them open these books but only if they can pay extra taxes, the former Full Tilt covergirl arms herself with a taser gun and takes aiming at a Red Pro.

Formation of Cereus — the two most scandal-ridden online poker sites officially join forces to create a recovering cheater supersite, flooding their own tables with “refund” money to keep the action moving.

Plug Pulled on PokerBlog.com — hardly the biggest deal in the bigger picture … but PartyPoker’s apologetic canning of Dr. Tim represents a new fiscal reality facing even the most legitimate of online poker sites and their workers.

Introduction of HB 222 in Texas — Take 2 on trying to bring the game that had everything to do with the creation of an $18 billion industry (subject to all the hubbub above) back home where it belongs.

All this, of course, is going on in the midst of a major lawsuit related to internet authority in Kentucky — where unprecedented government action has shaken up/down the online poker industry, forcing noticeable shifts in business ops and resource allocation. Clearly:

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.”

Right now, the Supreme Court is (re)considering connotations of the F-word when mentioned in passing on TV. That seems particularly interesting — at least in terms of the perspective it provides — as I’m reading what Bill Poser has to say about the Kentucky domain seizure cases. Poser is a linguistics expert who contends that Gov. Steve Beshear’s claims have no teeth, because of a linguistics problem treating a domain name like a “gambling device” … which he contends simply holds no legal water.

In addition, this non-poker blogger says the case has problems because:

* Many people like internet gambling.
* Many people think that it is none of the State’s business.
* The State’s action is not the result of a consistent anti-gambling policy but is pure rent-seeking. Kentucky is a gambling-friendly state. It is just trying to reduce the competition.
* Quite a few of the domain names are not in fact associated with internet gambling sites.
* The court’s ex parte order violates due process.
* The court does not have jurisdiction over either the businesses or the domain name registrars.
* The court’s action violates the Commerce Clause of the Constitution.

For those of you who care about the outcome of this case — and really, we all should, regardless of how we feel about poker, because it potentially impacts anyone who uses the F-ing internet — check out the rest of what he has to say.

Affected by the IP ban:

Illinois
Indiana
Louisiana
Michigan
New Jersey
New York
Nevada
Oregon
South Dakota
Utah
Wisconsin
Washington
Kentucky

Not sure how Nevada’s being included in this affects Doyle Brunson’s ability to play on his own site.

Well, so much for all those jerks who said we’d never last six months! LOL! In Part 1 of this two-part special we not only have fun and celebrate our two- year anniversary, but also cover industry news from Kentucky, and what some Scientists and Psychologists think about our industry!

From APCW.org:

In Part 2 we flash back to my college days (as a gay superhero) more than 15 years ago! Plus, see your donations at work as we wrap-up our Hurricane Ike Relief Fund project on location in Houston and Galveston, Texas! Click here for Part 2.

Well, to be truthful, it coulda been a lot worse! On first glance, it may look like Kentucky Governor Steve Beshear has won this court case… but not so fast. While it’s true that the court upheld the state’s right to seize the domain names, the did give online gambling company’s an out! Tune in to see!

We also release the results of our Bodog cash out audits to see how long it really takes for players to get their money… plus ask why so many online gamblers seem to be in favor of electing John McCain!

From APCW.org:

The PPA’s public response to the courtroom loss:

PPA Disappointed in Ruling in KY Domain Name Seizure Case

WASHINGTON, DC. (October 16, 2008) –The Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nationwide and more than 16,000 members in the Commonwealth of Kentucky, today expressed its disappointment in the ruling by the Franklin Circuit Court that states poker is not a game of skill and maintained the Commonwealth’s right to seize the domain names of Internet gambling websites if these sites do not “geo-block” access for residents of Kentucky.

“Clearly, we believe the judge in this case got it wrong,” said John Pappas, executive director of the PPA. “First of all, we strongly disagree with Judge Wingate’s ruling that poker is not a game of skill. As demonstrated in the amicus brief we filed, skill plays an essential role in being a successful poker player. Additionally, we believe that by confirming Governor Beshear’s actions, the court has set a dangerous precedent for censorship of the Internet. Today’s ruling is a big step backward for both personal rights and Internet freedom.”

More…