The Commonwealth of Kentucky has seized 141 domain names that are used for online gambling websites. Under Kentucky law, one must be licensed to offer any gambling service within the Commonwealth, and Kentucky has the right to seize any gambling device, which includes domain names, that violates this law. This is the first action of its kind by a state and raises numerous concerns amongst domain owners and the Internet community, and it may have far reaching legal implications.
The order has not been well-received by those outside of Kentucky. In fact, the legality of it has been questioned. However, the Governor remains steadfast in his beliefs that Kentucky is within its rights and that this is needed to protect the local economy and protect its citizens.
Questions remain unanswered, however. What will happen with the list of domains now? Will the owners be given an opportunity to implement the supposedly readily available technology that can limit from where a website can be accessed? Regardless, domain name owners must now feel that their domain name asset may have future added liability within some states that may choose to enact laws similar to that in the Commonwealth of Kentucky.