The Kentucky Governor’s office wasted little time Wednesday, appealing Tuesday’s decision by the Court of Appeals that domain names are not gambling devices under the meaning of the state law cited as the justification for the state’s seizure of 141 domain names. By overturning the decision of the lower court, the Court of Appeals rejected the Governor’s attempts to extend Kentucky law well beyond it’s geographic limitations.
The majority opinion appears to follow the reasoning presented by the ICA in its amicus brief which said, "In order to fit within Subparagraph (b), the Court must first find that an Internet domain name is a "machine or any mechanical or other device … designed and manufactured primarily for use in connection with gambling."" This point, in the ICA’s opinion, required a "statutory leap" that the Opinion likewise said "stretches credulity".
The Concurring Opinion also agreed with the ICA’s point that the court lacked authority to proceed in rem against a domain name. This detail, in the long term, may turn out the more important result for ICA members.