Kentucky will receive more than $6 million for its assassin actions of seizing gambling domains… all in some hillbilly backward attempt to curb rampant unregulated online gambling in the state, Governor Steve Beshear announced today. The settlement stems from the unprecedented action Kentucky took in 2008, when the Justice and Public Safety Cabinet filed suit to seize 141 domain names used to conduct unauthorized and unlicensed internet gambling in the Commonwealth.

The case, Commonwealth of Kentucky ex rel. J. Michael Brown, Secretary, Justice and Public Safety Cabinet v. 140 Internet Domain Names, was the first of its kind in this country. Three years later, two federal entities – United States Attorneys for both the Southern District of New York and the District of Maryland — brought similar lawsuits against some of the same internet gambling domains names that had been seized by Kentucky.

The commonwealth joined those federal actions, resulting in the $6,075,000 settlement of claims against online gaming giants PokerStars and Full Tilt Poker, which are no longer operating in Kentucky.  PokerStars and Full Tilt Poker are the two largest purveyors of illegal online gaming.

“As a result of our bold and steadfast determination to protect Kentucky consumers, our signature horse racing industry, and legitimate charitable gaming interests, unlicensed and unauthorized internet gambling has been substantially curtailed in Kentucky, and we’ve created a framework for the rest of the country to manage the issue in their own jurisdictions,” Beshear said. The funds will go toward this year’s General Fund, Beshear said.

UPDATE: In the years since Kentucky seized the gambling domains of these companies, they have shown their true hypocrisy. Now ten years later, the state has regulated sports betting themselves. Now, however, they get to keep all the profits. I guess betting over the internet isn’t really as dangerous as they claimed for children or addicts. Or maybe it is… but they don’t give a shit if they are the ones profiting.