The state of Kentucky is in the process of taking 141 online casinos to their Supreme Court in order to seize their domain names because the online casinos have permitted gambling across state boundaries into Kentucky. At the same time, they are allowing online gambling to increase within their borders.

Kentucky is trying to have the domain names of the online casinos categorized as “gambling devices,” which are allowed to be seized by Kentucky law. Governor Steve Beshear has taken a hard line about online casino gambling across state borders into Kentucky. Beshear, the governor of the home of the Kentucky Derby, has also, at the same time, seemingly put on blinkers to the new developments of online horse race wagering inside Kentucky’s borders.

The Churchill Downs racetrack has signed deals with YouBet.com and TwinSpires.com to take online bets for the racetrack’s spring meet. The state of Kentucky will benefit by an increase in revenue from this Internet gambling. People from other states are also allowed to place wagers on the local Kentucky races through these websites, however, no taxes are applicable for out of state jurisdictions.

Kevin Flanery, Senior Vice President of Churchill Downs, said “Taking care of our customers and making it convenient for them to access our content are among the top priorities of Churchill Downs.”

No reference was made by either Kevin Flannery, or Michael Brodsky, CEO of YouBet, to the fact that they are being allowed to perform exactly the same actions that Kentucky is trying to penalize online casinos for.