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Kentucky Fried Crazy

The Kentucky government’s ridiculous ambition to protect state horseracing proceeds by snatching up the domain rights of one hundred and forty online slot machine and gambling sites doing business with state residents is starting to gather plenty of attention – and NOT in a good way. A state-level court is contemplating the issue, while the collective ire of an international industry focuses on local lawmakers. Many experts in the (massive and lucrative) field of internet gambling have expressed the belief that the Kentuckian legislators have no idea whatsoever how much backlash could result from their overreaching attempt to pass this protectionist bit of lawmaking.

The Kentucky courts are expected to hand down their decision on the online slots and casino gambling site matter as quickly as tomorrow, and the sizeable international gambling industry is waiting to hear the news. Almost all the World Wide Web gambling sites that stand to be affected by the suit have already announced plans to instantly appeal the verdict, should it be in favor of state lawmakers. But the gambling sites’ operators are not the only ones willing to go to the mat. GoDaddy.com, the registration company from which most of the sites were established, as well as the few other domain registrants involved, would have to cooperate with the order to shut down the sites for any decision to be effective. GoDaddy has already stated vehemently that it will vigorously fight any such requests.

An even-bigger issue is the one of censorship. Some experts have speculated that, even if the courts decide in favor of the government, a careful review of the Constitution would end up on the websites’ side.

Back to October 2008 Archive.