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'Very complex' online gambling case continued
State wants attorneys to name their clients
By RONNIE ELLIS
CNHI News Service
FRANKFORT — Kentucky wants to know who owns those 141 domain names for Internet gambling services.
But at a hearing Friday afternoon in Judge Thomas Wingate’s Franklin Circuit Courtroom attorneys representing those entities steadfastly declined to reveal the names of their clients beyond the domain name itself.
Wingate gave attorneys for the gambling sites seven days to file briefs on a host of legal issues involving standing, jurisdiction and property rights before he conducts another hearing at which he could allow the state to forfeit the names.
Robert Foote, a Chicago attorney representing the state, told Wingate “no one has standing” to appear before the court until a person or corporation is named.
“A domain name has no right to have a lawyer, only a corporation or person can have a lawyer,” Foote said. “And no one here is going to tell you they represent anyone.”
William Johnson said he was there representing seven clients and Alice Grimes said she represents goldencasino.com. But they – and other attorneys – declined to say who owned those names.
Instead they argued the action against 141 domain names took place “under cover” and with no notice to their clients. They sought a continuation to brief Wingate on matters of law which they contended will demonstrate the court has no jurisdiction and seeking to dismiss the action.
Last week, Gov. Steve Beshear and Justice Cabinet Secretary J. Michael Brown announced Wingate had granted them the right to seize the 141 domain names through which Kentuckians engaged in illegal gambling online. They said “tens of millions of dollars” were flowing out of Kentucky without regulation or taxation and the illegal gambling damaged legal gambling in the state such as horse racing and the lottery. Friday’s hearing originally was to determine whether the state could forfeit those names, but Wingate didn’t rule on that.
Foote said the state is seeking two things: agreement by owners of the domain names to block access from the state of Kentucky and compensation for previous gambling activity from Kentucky. He said the state would not shut down domain names of any person or corporation willing to appear and claim ownership of the names while the two sides “work out a deal.”
Two trade association groups – Poker Players Alliance and Interactive Media Gaming Council – filed friend of the court briefs opposing the state’s action.
Brown said the state’s goal is to stop the activity in Kentucky and he used the only avenue available to him – a 1974 Kentucky law that allows the state to seize illegal gambling “devices.” The state contends the domain names constitute gambling devices.
Foote said at least one site has already violated Wingate’s order giving the state control of the domain names until he rules on forfeiture and the gambling entities will use the extra time to circumvent the order. Jennifer Brislin, spokeswoman for the cabinet, said at least one site has shut down access from Kentucky.
Brown said he is not attempting to shut down the sites entirely but to block access from Kentucky. And he said the state wants any compensation to which it’s legally entitled.
Wingate let stand his seizure order and told attorneys for the domain names, “You are going to have to eventually pony up and say who these people are.”
State wants attorneys to name their clients
By RONNIE ELLIS
CNHI News Service
FRANKFORT — Kentucky wants to know who owns those 141 domain names for Internet gambling services.
But at a hearing Friday afternoon in Judge Thomas Wingate’s Franklin Circuit Courtroom attorneys representing those entities steadfastly declined to reveal the names of their clients beyond the domain name itself.
Wingate gave attorneys for the gambling sites seven days to file briefs on a host of legal issues involving standing, jurisdiction and property rights before he conducts another hearing at which he could allow the state to forfeit the names.
Robert Foote, a Chicago attorney representing the state, told Wingate “no one has standing” to appear before the court until a person or corporation is named.
“A domain name has no right to have a lawyer, only a corporation or person can have a lawyer,” Foote said. “And no one here is going to tell you they represent anyone.”
William Johnson said he was there representing seven clients and Alice Grimes said she represents goldencasino.com. But they – and other attorneys – declined to say who owned those names.
Instead they argued the action against 141 domain names took place “under cover” and with no notice to their clients. They sought a continuation to brief Wingate on matters of law which they contended will demonstrate the court has no jurisdiction and seeking to dismiss the action.
Last week, Gov. Steve Beshear and Justice Cabinet Secretary J. Michael Brown announced Wingate had granted them the right to seize the 141 domain names through which Kentuckians engaged in illegal gambling online. They said “tens of millions of dollars” were flowing out of Kentucky without regulation or taxation and the illegal gambling damaged legal gambling in the state such as horse racing and the lottery. Friday’s hearing originally was to determine whether the state could forfeit those names, but Wingate didn’t rule on that.
Foote said the state is seeking two things: agreement by owners of the domain names to block access from the state of Kentucky and compensation for previous gambling activity from Kentucky. He said the state would not shut down domain names of any person or corporation willing to appear and claim ownership of the names while the two sides “work out a deal.”
Two trade association groups – Poker Players Alliance and Interactive Media Gaming Council – filed friend of the court briefs opposing the state’s action.
Brown said the state’s goal is to stop the activity in Kentucky and he used the only avenue available to him – a 1974 Kentucky law that allows the state to seize illegal gambling “devices.” The state contends the domain names constitute gambling devices.
Foote said at least one site has already violated Wingate’s order giving the state control of the domain names until he rules on forfeiture and the gambling entities will use the extra time to circumvent the order. Jennifer Brislin, spokeswoman for the cabinet, said at least one site has shut down access from Kentucky.
Brown said he is not attempting to shut down the sites entirely but to block access from Kentucky. And he said the state wants any compensation to which it’s legally entitled.
Wingate let stand his seizure order and told attorneys for the domain names, “You are going to have to eventually pony up and say who these people are.”