Frankfort, KY – Online gambling sites pay no taxes in Kentucky and provide no jobs, yet they siphon millions of dollars from state residents. So last week, the state seized the Internet domain names of 141 online gambling sites, citing Kentucky law allowing the seizure of illegal gambling devices. But Attorney Edward Leyden, who represents owners of some of the seized names, says the state acted improperly. The statute that they used, which talks about gambling devices like roulette wheels and slot machines, certainly doesn't sound like what they're going after here, which is intellectual property.
Since domain names are registered all over the world, a key issue that must be resolved before the case can move forward is whether or not Kentucky courts have jurisdiction. That will be argued at the next hearing, October 7th.