For those interested, video of the hearing is now available below:

Many months ago, a group of organizations representing internet freedoms and the rights of online gambling companies won an important appeal in the Kentucky court system, and that victory prohibited the Commonwealth from proceeding with its attempted seizure of those domains. The state promised to appeal to the Supreme Court, and that latest appeal was granted this month. Those fighting the state on the matter include iMEGA (Internet Media Entertainment & Gaming Association), PPA (Poker Players Alliance), ACLU (American Civil Liberties Union), CDT (Center for Democracy and Technology, EFF (Electronic Frontier Foundation), Internet Commerce Association, eBay, and Network Solutions. (Can we win on number of appellees alone?)

According to iMEGA’s announcement:

The Supreme Court has set oral argument in Commonwealth of Kentucky v. IMEGA, et al for 11 a.m. on Thursday October 22, 2009 in the Supreme Court courtroom. The order allots 15 minutes for each side.

“We’ve been waiting for this for a long time, and we’re going to win again,” said Joe Brennan Jr., iMEGA’s chairman. “From the beginning, Kentucky law has clearly supported our position, and a win in the State Supreme Court will put the final emphasis on that.”

Anyhow, part of the point of this post is a just-because-I-can: First time I have ever played on an airplane — like while we’re actually flying in the air! — and I think that’s pretty darn neato. (And am thankful that AirTran, so far, has not blocked PokerStars, Full Tilt, Pokerati, Wicked Chops, or … actually, I’m kinda afraid to check anything by the Bang Brothers.)

See what I’m getting at here? Me neither … but I swear it’s relevant, because technically I’m in Kentucky right now, theoretically I could be in Washington State, and no matter what the state of the UIGEA, I’m pretty sure there is not proper justification for shooting this plane down.

Anyhow, crap, I gotta finish up this post because I’m running out of power … wi-fi on this Boeing 717 yes, power outlets no … but technology, internet, jurisdictions, mid-air financial transactions … this is the stuff our future laws will have to deal with, and obviously simply trying to prohibit online poker play or even just attempting to enforce the sooo-like-2006 UIGEA won’t cut it.

Let’s get ready to rumble! It’s time for the next round in the battle of iMega vs. the State of Kentucky! Not only that, but this week we show video evidence of Governor Steve Beshear’s true motivations for banning online gambling in that state! Also, we have online gambling news from Intertops, Microsoft, and Denmark! What a show!

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.

(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”.

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.

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.

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:

Exposing John McCain! How deeply is he tied to the gambling industry? Does he want to criminalize online gambling? Why are Washington ethics groups calling for an investigation of his gambling activity? It’s certainly not our job to tell Americans whom to vote for this November, but it is our job to make sure people make the most informed decisions that they can. To that end, we have been doing some digging this week on what John McCain says and what John McCain does… and they don’t always seem to agree when it comes to gambling! Plus an in-depth look at the Kentucky domain name game.

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…

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!

PPA Statement on Kentucky Seizure of Poker Websites

WASHINGTON, DC. (September 23, 2008) – John Pappas, executive director of the Poker Players Alliance (PPA), the leading poker grassroots advocacy group with more than one million members nation-wide and more than 13,000 members in the Commonwealth of Kentucky, today issued the following statement in regards to legal action taken by the Commonwealth to seize the domain names of Internet gambling websites.

“The Poker Players Alliance is outraged at the actions taken by Kentucky Governor Steve Beshear and the Franklin County Circuit Court to seize the domain names of Internet gambling websites.  We believe this action not only unduly restricts the freedom of Kentucky residents to play games of skill, such as poker, online, but sets a precedent for censorship of the Internet by force.

“Many of Governor Beshear’s arguments – that online poker is illegal, unregulated and without a mechanism to capture tax revenue – are false. Online poker is not illegal under Kentucky law, is regulated in its home jurisdiction and the Commonwealth of Kentucky chose not to license and regulate poker websites.

“If the Governor truly wants to implement tighter regulations, taxation mechanisms and consumer protections on Internet gambling, the PPA suggests he publicly support federal legislation by U.S. House of Representatives Financial Services Chairman Barney Frank, H.R. 2460, which would achieve those goals

“Poker is a game of skill, a true American pastime and has a proud heritage in Kentucky. Simply because the game has evolved into the 21st Century, it should not be treated as suspect activity.  Forcefully and secretly seizing control of websites that offer online poker games is not a sound public policy or a sound legal solution.”

Have a listen to Beshear’s declaration of war against an industry near and dear to so many of our hearts, and decide for yourself if you think he’s bluffing:

Steve Beshear vs. Online Poker (right-click to save/download)
Kentucky governor on the need for hostile domain takeover
Sep 22, 2008

(5 min 29 sec)

Prediction: If this case makes it into court in any non-frivolous way, it will end up in the Supreme Court. With or without online poker as a defendant, Kentucky is challenging what government can and can’t do in terms of policing/taxing the internet, issues of states rights vs. federal law, and matters of international treaty and internet jurisdiction to boot.

Official communications from KY.gov:

Kentucky is the first state to bring an action against Internet gambling operators that has resulted in the seizure of domain names. The order came Thursday in response to a suit filed by the Justice and Public Safety Cabinet on behalf of the Commonwealth seeking to force the sites to block access to Kentucky users, or relinquish control of their domains. Judge Thomas Wingate ordered a forfeiture hearing for Sept. 25th on the matter. The Justice Cabinet had asked the court to order Internet registrars to transfer control of the domain names to the Commonwealth, pending a hearing on whether forfeiture is required.

[...]

Sections of KRS Chapter 528 specifically mandate the forfeiture of any gambling devices, such as domain names and websites for Internet gambling, and make it illegal to conduct, promote, advertise, own, profit from or conspire to profit from an illegal gambling operation.

So essentially Kentucky is asking courts to throw out the concept of innocent ’til proven guilty, and make the state the official sponsors of The November Nine.

What’s particularly funny (peculiar) is that Beshear is actually saying the same things that we are in many respects. Money being lost to [unregulated] online gambling … absolutely … and that’s why we are working on federal efforts to make sure Americans get their legal slice of the pie. That revenue wouldn’t go to Kentuckyians specifically, but hey, you’d have more to work with toward that goal. And:

The unregulated gaming lacks consumer protections to ensure that individuals who choose to gamble are actually paid for their winnings.

Wait a minute, seriously … we have the exact same concerns. And you also say you want to protect Kentuckyians … but making these sites more illegal wouldn’t help that effort … they’d just become shadier and shadier … it’s only in allowing the legal American online poker companies that players would have legally enforceable standards to hold these sites to. ‘Tucky-Guv, are you sure the PPA didn’t put you up to this as some sort of tricky political move? Because these are the issues poker players are trying to bring to light in our fights against some of the same people who have been your enemies before, spewing misinformation like “Casinos increase violence, high school dropouts, prostitution and abortion“:

Dude, brother, I know man, people say some crazy shit sometimes, sensible government be damned. Funny Photoshop, though.

Related

And we thought Washington state was bad for making it a felony to play online poker … now, in Kentucky, Governor Steve Beshear is trying to seize control of 141 gambling-related sites, blocking access to the likes of Full Tilt, PokerStars, Bodog, et al.

[Via AintLuck.com]

Yikes, this is some pathetic/scary shit. Not because he’s declaring sites we know and love as criminal enterprises, but because the guv wants to control its citizens’ private web access!

Um, hello, communism? What makes it worse is that he seems to be doing it on behalf of the brick-and-mortar casino industry … dude, I know you guys are slow in Kentucky, but the idea that online play hurts as opposed to helps casinos went dead in like 2006. No details on how one would actually block the internet within state lines … I suppose you can force your cable and phone providers to behave in certain ways … but, um, out-of-town cell phones maybe? Seriously, ‘Tucky-Guv-Dude, are you really that out of touch with the world/American Constitution?

[Non-topical, anti-Republican rant deleted] Stupid Democrat.