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KY Appeals Court Nixes Seizure of Gambling-Linked Domains

Posted by timothy on Wed Jan 21, 2009 04:12 PM
from the stick-to-the-whiskey-making dept.
davidwr writes "A state appeals court in Kentucky ruled that the state courts cannot seize domain names as 'gambling devices.' The court ruled that 'it's up to the General Assembly — not the courts nor the state Justice Cabinet — to bring domain names into the definition of illegal gambling devices.'"
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Related Stories

[+] State of Kentucky Seizes Control of 141 Domain Names 505 comments
ashmodai9 writes "In a rather interesting (read: insane) decision, a district judge in the State of Kentucky has awarded control of 141 online gambling domain names to the governor of the state. Most of these are hosted offshore, and very few are registered under US domain name registrars, let alone registrars in the State of Kentucky (are there any?). You can check out the press release here, and confirm that the Commonwealth of Kentucky does in fact now 'own' these domain names by performing a WHOIS search on any of the domains listed here."
[+] News: Kentucky Judge Upholds State's Gambling-Domain Grab 272 comments
JohnHegarty writes "A Kentucky judge has upheld that state's seizure of some of the world's most popular online casino domain names, ruling they constitute a 'gambling device' that is subject to Kentucky's anti-gambling laws." Wasn't it surreal enough on the first round?
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  • Kentucky (Score:2, Funny)

    by samriel (1456543)
    I can hear the banjos floating over them thar internets now, clogging up the tubes...
  • by drewzhrodague (606182) <drewNO@SPAMzhrodague.net> on Wednesday January 21 2009, @04:19PM (#26552069) Homepage Journal
    IANAL, but the Internet is a network, not a jurisdiction. I can't imagine they'd be able to do anything, other than block the site at the borders of the state, which is ridiculous.

    Sure, there is gambling on the Internet. Sure, they may not like it. Could they prevent Citizens from using those websites?
    • by internerdj (1319281) on Wednesday January 21 2009, @04:22PM (#26552107)
      The great firewall of Kentucky...
      • by Ungrounded Lightning (62228) on Wednesday January 21 2009, @04:50PM (#26552549) Journal

        I love how each state thinks it is pretty much the only thing in existence and the rest of the world can play by it's rules.

        And how does this differ from other countries - like China, Russia, England, ...?

        Remember: "States" - and Indian Tribes - in the United States are separate countries. The States just happened to join a federation for dealing with other countries - a federation like Common Europe, NATO, the UN, the League of Nations, etc.

        (And of course the federation has progressively encroached on the States' sovereignty ever since, eroding the safeguards intended to retard such behavior. That's exactly what was expected at the time. But it's also a separate issue.)

        • by Red Flayer (890720) on Wednesday January 21 2009, @05:33PM (#26553101) Journal

          Remember: "States" - and Indian Tribes - in the United States are separate countries. The States just happened to join a federation for dealing with other countries - a federation like Common Europe, NATO, the UN, the League of Nations, etc.

          (And of course the federation has progressively encroached on the States' sovereignty ever since, eroding the safeguards intended to retard such behavior. That's exactly what was expected at the time. But it's also a separate issue.)

          That's a gross oversimplification. Many of the people who contributed to the Constitution were in favor of a strong Federal government (hence the term 'Federalist' used to describe them). While some were vociferously against a strong Federal government, it is mistaken to say that the United States was intended to be a federation like those you mention -- the original intent, as ratified by each of the states, was to be a much stronger union than any of those federations.

          I will not disagree that the federal government has subsumed much of the authority of the states; I will, however, point out that the original States were not considered to be independent countries, otherwise foreign relations would not have been assigned to the federal government.

          As for Indian tribes, they truly are more like sovereign nations, but there are entanglements that make them not quite independent.

          To get back to the meat of your post, though -- states do have certain sovereign rights, and while sometimes they act without considering the impact of their actions on other states, this is one reason why we have a federal government -- to mediate disputes. It is a valid point that the OP makes, that it's somewhat screwy for a state or country to make unilateral proclamations that affect the rest of the country (or world). It's a very provincial attitude that pisses other people off.

        • Re: (Score:3, Informative)

          by AuMatar (183847)

          No, states in the US are *not* separate countries. That was true under the Articles of Confederation, but the states gave up their sovereign status by ratifying the Constitution. The states are now semi-autonomous legislative districts with delineated responsibilities under the nation the United States. Far closer to the Scottish parliament and the UK than to the EU, UN, etc.

        • by glwtta (532858)
          Remember: "States" - and Indian Tribes - in the United States are separate countries. The States just happened to join a federation for dealing with other countries - a federation like Common Europe, NATO, the UN, the League of Nations, etc.

          That's a whimsical way of looking at it, but blatantly untrue. The US is, in fact, a federation, which means that its member states are explicitly not sovereign countries; just like Canada, Brazil, and the Russian Federation. Although the US states do make a lot mor
        • I love how each state thinks it is pretty much the only thing in existence and the rest of the world can play by it's rules.

          And how does this differ from other countries - like China, Russia, England, ...?

          Well for one, US States aren't countries. They aren't soverign. They aren't self determining. US Federal Law overrides state law in clear and specific terms.

          Remember: "States" - and Indian Tribes - in the United States are separate countries.

          You live in a fantasy world. Why do you think this? The juri

          • Re: (Score:3, Interesting)

            Looks like someone flunked american history or government. The states aren't countries. The commonwealths like Mass or VA aren't countries either.

            As originally envisioned, the states were supposed to do most of the governing, except for things that are international or inter-state, but the states are not countries.

            I agree that someone flunked but I doubt it was yours truly.

            Note that the first 13 states PREDATE both the Continental Congress and the Federal Government which succeeded it (though "staged a coup

      • by Hatta (162192)

        The funny thing is that this judge didn't even rule that Kentucky didn't have jurisdiction over domain names. He just ruled that domain names weren't gambling devices. If the legislature decides to classify domain names as gambling devices, they could try the whole thing over again.

        • Patriotism is bigotry.

          Only when your country is defined by your race. Are you German or something?

          • Re: (Score:3, Insightful)

            by Hatta (162192)

            You can be bigoted over more things than race. When you believe your race is better than all others, that's racism. When you believe your country is better than all others, that's patriotism. In each case, you only support a group because you happen to be a member of it.

            • I would argue that patriotism is not the belief that your country is somehow inherently better than others. I think patriotism is simply a pride in your country that motivates loyalty, with no implications about other countries.

            • Patriotism as derived from Father as in patrilinear decent as the basis for most early agrarian societies that gave rise to the nation-state. In modern use, pride in country.

              Bigotry has no real etymology, only shifting meanings as the politically-correct deem it usefully applied to others. (like fascism). In modern use, intolerance of opinions or lifestyles other than ones familiar.

              Race delineates differentiable groups within the same interbreeding taxonomic group.

              Pride isn't a zero sum game. I can be proud

              • Man oh man...if only I had mod points.

                LMFAO--the image of a peace-loving bald Indian giving a long, educated dissertation, and finishing with "bitch"

      • >>>Oh these cute Americans. I love how each state thinks it is pretty much the only thing in existence and the rest of the world can play by it's rules.

        Oh these cute Europeans. I love how each state in the EU thinks it is pretty much the only thing in existence and the rest of the world can play by it's rules. ;-)

        If Kentucky wants to ban gambling within its border, its certainly within its right to do so, just the same as Spain can ban gambling insides its border. The two are analogous situations

        • It's absolutely NOT an analogous situation: Kentucky is a tiny little redneck state...No more populous than Ireland, Norway, or Croatia.

          Comparing that to California, the 8th largest economy in the world...Now that's just wrong.

          • Kentucky is a tiny little redneck state

            you really think it's acceptable to make that kind of generalization, just so long as you mean white. wow.

            And that 8th largest economy is now the 10th largest economy thanks to bullshit labor laws and wealth redistribution taxes driving companies to Nevada, Utah, etc.

          • >>>It's absolutely NOT an analogous situation: Kentucky is a tiny little redneck state...

            True. Let me rephrase my previous post with a more-accurate comparison. "If Kentucky wants to ban gambling within its border, its certainly within its right to do so, just the same as Greece can ban gambling inside its border."

  • Great... (Score:5, Insightful)

    by CmdrPorno (115048) on Wednesday January 21 2009, @04:21PM (#26552101)

    I predict a bill will be introduced in the next session of Kentucky's General Assembly changing the definition of "gambling devices" to include domain names. Way to suggest an escape hatch for the attorney general and lawmakers...

    • Re:Great... (Score:5, Informative)

      by Chris Mattern (191822) on Wednesday January 21 2009, @04:30PM (#26552235)

      If it passed, the law would get struck down in the Federal courts as unconstitutional. States don't get to interfere in interstate commerce, and that includes trying to regulate internet domain names.

      • This isn't interstate commerce. Telling a company, "You can't create a website at www.gambling.state.ky" is no different than telling a company they can't build a gambling house in Louisville.

        Go visit Utah sometime. If you want gambling or porn, you have to drive to Nevada. Within the state, those activities are banned. (You can buy a copy of Playboy through the mail, but not in stores.)

    • Re:Great... (Score:4, Informative)

      by Translation Error (1176675) on Wednesday January 21 2009, @04:42PM (#26552413)
      That's the court's job. When disallow something in a ruling, they tell why they did so; they don't say, "You can't do this, but we're not going to tell you why."
      • What GP is saying is, the reason should have been more along the lines of "What the fuck are you doing, that is interstate commerce and totally out of your jurisdiction, you fucktard Governor!" instead of "Based on a minor ambiguity in definitions, we need the legislation to clarify whether they are going to let you do this... [trample on the property rights of out-of-state and international entities with no presence in KY]"

        • I could be wrong, but I think it's the responsibility of the Federal Courts to determine whether something is a matter of interstate commerce. A State Court can only rule on matters as they relate to the state constitution. Again, I could be (and probably am) wrong, but that was my take on it.
  • What?? (Score:4, Insightful)

    by imamac (1083405) on Wednesday January 21 2009, @04:22PM (#26552109) Homepage
    It's not the job of the judicial branch to make law? Who knew?
    • Re:What?? (Score:4, Informative)

      by LandDolphin (1202876) on Wednesday January 21 2009, @05:10PM (#26552797)
      No, they don't make law. However, they do invalidate unconsitutional laws.
      • by fm6 (162816)

        They do make law. Please note the difference between statue law, case law, common law, and administrative law. Only the first is done by legislation.

        • I know they do. The point is that their job is o interpret it, not legislate by "interpreting" something that isn't even referenced in law.
          • by fm6 (162816)

            Oh for heaven sake, when you respond to a response, read the post the person's respnding to.

  • KY? (Score:5, Funny)

    by Anonymous Coward on Wednesday January 21 2009, @04:22PM (#26552125)

    I thought this article was about something else entirely. Sure, Kentucky makes more sense, but its much less ... appealing.

    I'm disappointed. Disappointed and dry.

  • KY (Score:5, Funny)

    by MyLongNickName (822545) on Wednesday January 21 2009, @04:22PM (#26552129) Journal

    I saw KY, and thought it was some elaborate goatse troll.

  • by Snotman (767894) on Wednesday January 21 2009, @04:35PM (#26552313)
    when grabbing domain names owned by some other entity in the World? If any entity can just claim that a domain name is illegal, then what prevents me from grabbing KY domain names? Why would a state entity have a greater authority than any other political entity or individual? Who holds KY responsible for acting without a prerogative for this power? For instance, why don't the island nations hosting gambling companies grab all KY GOV domains just to be malicious? I would.
  • by dmomo (256005) on Wednesday January 21 2009, @04:40PM (#26552383) Homepage

    I'm not making a statement for or against this action. But it's an odd thing when you think about it. A domain name is really just that. The name of a domain. The site can still be up, it just cannot be referred to by the name anymore. It won't stop the the gambling, it will simply make it more difficult to describe (or find in this case). They cannot confiscate the IP address or shut down the machines if those sites are off shore.

    I guess this is the equivalent of keeping people away from a location by erasing it from their map.

    • by Ungrounded Lightning (62228) on Wednesday January 21 2009, @04:57PM (#26552619) Journal

      But it's an odd thing when you think about it. A domain name is really just that. The name of a domain.

      "What's in a name?"

      In this case it's NOT just a name. It's an entry in a publicly-accessible and trusted database, mapping the name to a set of servers.

      THAT's what the state of Kentucky seized.

      And it's very valuable. I'm waiting with bated breath for the suits demanding reimbursement for lost (legal!) revenue resulting from the disruption of their business (along with damage to their trademark) caused by Kentucky's successful appropriation of their domain records.

        • [The 11th Amendment] is generally interpreted to mean states have immunity from suits from out-of-state citizens and foreigners not living within the state borders.

          I was under the impression it meant that, if a citizen of another state or foreign country wanted to sue (on civil issues) a state government it had to do so in that state's courts (or perhaps in the courts of a state where the act in question was committed and the defendant state had some "presence", i.e. assets worth seizing).

          Of course the stat

  • by Anonymous Coward

    Things don't sieze up when you lube up with KY.

  • by jambarama (784670) <`moc.liamg' `ta' `amarabmaj'> on Wednesday January 21 2009, @04:45PM (#26552465) Homepage Journal
    Ignoring for the moment that bans on gambling are stupid & this was a purely protectionist move, what should kentucky have done instead? Lets pretend this law was a good one that we wanted to see enforced, how can a state enforce it?

    KY doesn't have jurisdiction over the organizations behind the gambling sites (or the domain registrars, another problem with this case) - so they couldn't force location aware IP blocks (which don't work anyway), they couldn't fine the organizations, or impose any normal civil/criminal penalties. In addition, ISP level blocks don't work & are costly, and the servers were also outside KY and couldn't be seized.

    I agree this was a stupid stupid order that violated due process, free speech, and commons sense. But if the websites & owners in Antigua (or wherever they're based) were selling US credit card numbers & the accompanying data, from servers in Antigua at http://identity-theft.ag/ [identity-theft.ag] for purposes of fraud - what could a state do to enforce anti-fraud laws? (assuming this was a state question) What could the feds do, apart from file a claim with the WTO? (which they have regarding gambling in antigua I believe).
    • Lets pretend this law was a good one that we wanted to see enforced, how can a state enforce it?

      Short answer: it cannot. It would be unconstitutional in at least two counts: if considered as commerce, states cannot interfere in interstate commerce. If not considered as commerce then it's equivalent to speech, and would violate the First Amendment.

      A state can prohibit gambling, for instance betting on horse races. But it cannot prohibit anyone to publish horse race results. What could the state of Kentucky d

      • >>>If not considered as commerce then it's equivalent to speech, and would violate the First Amendment.

        When I was in Utah I tried to buy the just-released copy of Playboy's College Girls. None of the stores sold it, and when I asked why they said it's illegal to sell such things in stores. So I ordered it via the mail. POINT: The first amendment applies in most situations, but not all. States still have a lot of power to regulate what happens within their borders.

        And of course gambling is forbi

    • KY doesn't have jurisdiction over the organizations behind the gambling sites (or the domain registrars, another problem with this case) - so they couldn't force location aware IP blocks (which don't work anyway), they couldn't fine the organizations, or impose any normal civil/criminal penalties. In addition, ISP level blocks don't work & are costly, and the servers were also outside KY and couldn't be seized.

      I know, it sucks, doesn't it? But if someone created, I dunno... say, a Bingo system that use

      • But it'll be hard, and wickedly expensive, so they better be sure their "values" are worth it before trying to embark on something like that.

        No need to worry there, they will just increase the sin taxes.

    • Well, they probably don't want to go to the WTO (assuming that the Feds would even let them for reasons of jurisdiction)

      Because the WTO has already ruled in Antigua's favor as to the legality of offshore internet gambling:

      http://www.theregister.co.uk/2008/05/30/us_gambling_ban_investigated/ [theregister.co.uk]

      and the fact that the US is allowing some forms of gambling (horse racing, lottery, etc) while unfairly restricting offshore and internet gambling (despite the fact the TVG conducts interstate horse race wagering online i

    • Re: (Score:3, Insightful)

      by Dhalka226 (559740)

      What are they to do? Nothing. What should they have done? Not passed laws they can't enforce, or tried to enforce them in ways that are clearly not legal.

      Politicians simply need to stop thinking they can control the world or get everything they (personally) find morally objectable. It's silly enough when the federal government tries to enforce its morality on the Internet, but it's twice as silly when an individual state purports to have any authority over the rest of the world.

      Bad Stuff(tm) will al

      • Right I understand that. But consider the hypothetical situation I proposed. What if instead of targeting poker sites, the law targeted fraud rings? Still a fact of life? If so, what about kiddie porn distributors? How about a how-to on suicide bombing & evading border patrols?

        At some point, some service will be offered over the internet that we just won't want around. Then what can a state, or even a country, do to enforce the law on an entity outside its jurisdiction? So far the answer seems
  • That was one great, common sense judgement. Instead of allowing the executive branch to run free, they clearly stated it was up to the legislature to make a decision first. Imagine if the feds had judges this good. States and municipalities wouldn't be running around seizing just about anything their heart desired during arrests for everything from drugs to DUI abusing a vague and misguided statute when seen in it's intended form, and one that is beyond comprehension in how it has been applied.
  • by CuteSteveJobs (1343851) on Wednesday January 21 2009, @08:26PM (#26554995)
    What sucked in this case was that GoDaddy handed over all those domains without a fight, but Network Solutions fought the suit for their customers and won. Network Soluions > GoDaddy.

    http://www.gambling911.com/gambling-news/kudos-network-solutions-standing-online-gambling-sites-100708.html [gambling911.com]
    • Look at whatever economic or social statistics you want about the terrorist-sponsoring & harboring anti-West countries of the Middle-East and you'll see that the terrorist-sponsoring & harboring anti-West countries of the Middle-East have more important problems to address. By diverting attention to this kind of rabid hatred for the West & radical Islam, these Middle-East political & religious leaders expose themselves as the asshats they really are and reinforce negative stereotypes of thei