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Kentucky Governor Steve Beshear has found himself in an unpredictably awkward situation.  Fans of online casinos are simply calling it karma.  It has been a major story in the world of online gambling that Governor Beshear organized the seizure of the domain names of 141 online casinos.  The decision has been protested well outside of the online gambling world in recognition of threat to free speech and the future of the Internet.

Now a new development.  The United State Treasury is doing its best to finalize regulations to implement the Unlawful Internet Gambling Enforcement Act before President Bush hands the keys of the White House over to President-Elect Barack Obama.

Beshear’s intentions behind seizing the domain name of online casinos that did not block service to Kentucky residents were obviously protectionist; especially evident because Beshear excluded TwinSpires from the Internet gambling ban.  TwinSpires is a wager site that allows players to place bets on local horse races.

Unfortunately for Beshear, the Federal Government is not making such exclusions and TwinSpires is now facing a ban under the Unlawful Internet Gambling Enforcement Act.  Beshear must now explain why TwinSpires is a legitimate business operation while the online casinos he attacked in his state are not.  He must also demonstrate how the Kentucky based site is any less of a threat to society than all other gambling based sites. 

Obviously there is little sympathy for Beshear’s position.  Unfortunately, proponents of online casinos cannot celebrate.  While Beshear is getting his just desserts as his half-baked plan blows up I his face, a greater evil of Federal prohibition looms overhead.

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