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He who laughs last, laughs best.  Steve Beshear may be feeling the pinch of this old adage at the moment.  Governor Steve Beshear of Kentucky convinced a circuit court judge to allow him to seize the domain name of 141 online casinos.  The intention of Governor Beshear was to protect the tax revenues from Kentucky’s gambling establishments.  But his solution to the problem may be short lived.

Many online gamblers remember October 2006, like older folks remember the great depression.  This was when the United States passed the Unlawful Internet Gambling Enforcement Act.  The law made it illegal for financial institutions to process transactions to and from online casinos.

Enforcement of the law was left unclear; here is where things get interesting for Governor Beshear.  The United States Treasury has made it their mission to implement the law before President Bush leaves office and the new Congress enters. 

"Right now, the industry is waiting for the final regulations," said Mitch Stein, a partner with Sullivan & Worcester's gaming practice.

It is unclear as to when they will official release the rules but many are expecting them to come out with it sometime next week.  If the rules ban all forms of Internet gambling Beshear will have a heck of a time defending the TwinSpires.com website.  TwinSpires.com is a wager site for horse racing that pays taxes to Kentucky coffers.  Beshear will be left with the task of explaining to the Federal government why the site he worked so hard to protect is considered a legitimate business that should be allowed to continue operations. 

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