KY Appeals Court Nixes Seizure of Gambling-Linked Domains
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.'"
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?
Zhrodague.net - I do projects and stuff too.
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...
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It's not the job of the judicial branch to make law? Who knew?
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.
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/ 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).
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 do if someone phones a bookmaker in Las Vegas placing a bet on a horse?
Go after the buyers. Who uses that data for committing fraud? That's where the actual harm is perpetrated.
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