Kentucky sues Microgaming software

Posted under Casino News, US casino news by Online Casino Keeper

October, 2006 was the month when the UIGEA bill was passed in the USA, what initiated imposing bans on all money transactions between online casinos and players at the territory of this country. Beyond any doubts, it negatively influenced the work of many gambling sites and made them leave the market. And among the first states to fire the salvo against US online casinos and Microgaming software was Kentucky.

It happened in 2008, when the Governor of Kentucky seized domain names of 141 gambling companies. Among them were companies under iMEGA and IGS, including Microgaming casinos. This seizure case is still in the court and no one sees the end in sight. The other day the Kentucky Supreme Court sent the case back to the originating court, so everything seems to go to its starting point.

Meanwhile, Kentucky took another matter to the court also connected with online gambling industry in the USA. It’s based on a statute, which says that the state has a right to get revenues from online casino operators, which have worked illegally at the territory of Kentucky. Full Tilt Poker, Party Gaming and Microgaming are named in the original suit. So Microgaming again gets into Kentucky bad books.

In the suit it’s claimed that Microgaming was operating at the territory of the state from September 29, 2005 to October 23, 2008. During these three years the company was an operator, owner and profiteer from over 120 online casinos and 40 poker rooms. It served more that three million players every month, and now it’s time to pay. Kentucky claims that Microgaming is to pay a compensation covering the amounts of money, which were lost by players during the years of illegal operation of software provider. Moreover, other numbers are included into the total amount, such as pre-judgment and post-judgment interest, attorney fees, and “such further relief as the Court deems just and proper.”

Today there are no specific numbers, as they should be “determined at trial.” However, Kentucky is playing for keeps, as it has stated in the suit, the Microgaming accepted payments, made other commercial transactions, allowed making casino accounts, offered real wagering on online casino games, got profit, established sites with “a purposeful, specific intention to do business over the internet” with Kentucky players.

So currently one more serious suit is added concerning Microgaming. The advocates are working hard on these two suites, as it’s well-known, that they’ll be paid only if Kentucky gains a suit at law and get revenue from online casino operators.