Kentucky Governor Steve Beshear again has won a victory in the Kentucky courts in his quest to use an antiquated law that permits the recovery of gambling losses from illegal gambling.  This notch in his belt requires the internet poker domain owners to appear personally in court, rather than through a representative, such as iMEGA.  While this may appear to be a trivial issue, do not underestimate its importance.  Jurisdiction is a necessary element in all litigations, and appearing personally is a step along the path to securing it. 

As for the merits of Kentucky’s argument, which has been discussed on this blog before, somebody please explain to me how it is not hypocritical for a state known mostly for its horseracing (gambling!) to claim another form of gambling — and arguably one that is not pure luck — is not equally valid.  It’s not even clear that internet poker is illegal in the U.S.  At most, clarity on the issue extends only to the transfer of money via U.S. financial institutions.  Not to the wagering itself.  I get the Governor’s true motives, which obviously are to protect Kentucky’s horseracing industry and bolster his state’s coffers.  Valid motives, but he needs to be called on it.  Call a horse a horse and argue the issue on its merits.  Admit the hypocrisy, and then argue the validity of relying on a century old statute to collect from internet-based operators on its own merits.