Microgaming Hits Kentucky’s Target List

Kentucky adds Microgaming to its litigation list

It was reported over the weekend that Kentucky has initiated litigation against another international company, claiming jurisdiction over Microgaming, a software developer based in the Isle of Man. The state began its fight against online gambling companies a few years ago, when it tried to subject 141 online gambling sites and started a number of court cases, in which so far it achieved little.

Kentucky’s most recent attempt at the funds of online gambling companies involves Microgaming, which covers both operational and software entities, while some of the other companies include Full Tilt Poker and Party Gaming (earlier in 2010, Party Gaming closed a $105 million settlement with the US Department of Justice in return for a Federal indemnity against prosecution). The reasoning the state provided for such acts was that the companies were providing services to Kentucky citizens without being actually present in the state.

It was reported by Poker News Daily, which seems to have had an insight to case number 10-CI-505, that, according to Kentucky lawyers, Microgaming conducted commercial transactions; accepted monetary transfers; extended credit; hosted online poker games; set up and maintained accounts; took rake; shared in profits from its family of sites; employed proprietary software; and designed websites with “a purposeful, specific intention to do business over the internet” with players located within its borders.

Based on this, it can be concluded that Kentucky’s intention is to cast a very wide net; still, the expected results remain uncertain.

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