Kentucky is perhaps most famous in the online poker world for their very bold attempt to seize the domains of 141 online poker sites back in 2008, claiming that they were in violation of Kentucky law prohibiting being in possession of gambling devices, where these domains were held to fall within that definition.
Online Poker in Kentucky. Although some people consider poker to be a game of skill rather than one of chance, the KY legislature doesn’t see it this way. Players in Kentucky are able to play online poker, but only for free and there are currently no legal avenues to play online poker for real money in Kentucky. You must play at Kentucky online poker rooms that offer exceptional new player bonuses. Most of the time, these online gambling bonuses come in the form of a match credit on your first deposit. Let’s say some real money Kentucky online poker. There is no specific statute in Kentucky that governs online gambling’s legality. However, given the restrictive nature of the state’s laws with regard to gambling in general (basically everything is unlawful.
As hard as this is to believe, they did manage to get a court to order the sites in question, all outside not only the state but the United States, to block access to Kentucky residents.
In the end, this ruling had no legal effect, since the operators in question are well outside the jurisdiction of Kentucky, however 8 years later the legal battle wages on at the appellate level. In spite of all of this likely being a waste of the courts’ time, the government of Kentucky is not easily put off by any of that.
The latest ruling by the Kentucky Court of Appeals overturned a former ruling by their courts that was looking to force the remaining 132 domain owners which the state is seeking to seize to have their identities revealed. (1) There is no indication though that the state has lost its will to fight just yet.
This longstanding farce has ended up causing some of the online poker sites still serving Americans to withdraw from the Kentucky market and no longer accept players from there. Fortunately though not all have been intimidated, including Ignition Poker, one of our most trusted and recommended poker sites.
Gambling Law In Kentucky
If you live in Kentucky, you will no doubt be happy to know that the overwhelming will of the Commonweath of Kentucky is aimed at unauthorized gambling operators and not the gambling public.
Kentucky is indeed one of the states that has turned all of their guns against gambling operators. Promoting gambling, conspiring to promote gambling, possession of gambling records, permitting gambling, and possession of a gambling device are all criminal offenses. (2)
However, none of the crimes listed involve actually participating in gambling. While profiting from gambling is an offense, this does not mean profiting from wagering, but profiting from the business of offering wagering.
In fact players are excluded specifically from these laws. Some have believed that players may be guilty of the following offense, where “a person is guilty of promoting gambling in the second degree when he
knowingly advances or profits from unlawful gambling activity.” (3)
However, when we look at the definition of advancing gambling in the statute, it states that “a person advances gambling activity when, acting other than as a player, he engages in conduct that materially aids any form of gambling activity. (4)
Given that there are no other sections that could even possibly be construed as applying to players, this makes it quite clear that there isn’t any reason for Kentucky online poker players to be concerned, in spite of the state’s zeal for trying to go after operators in other countries.
Once again though these operators are way outside the jurisdiction of Kentucky and the state simply lacks both the legal authority and power to do anything to them that would be of concern to players. The Commonwealth of Kentucky has done a lot of barking and may continue to do so but basically they continue to bark at the moon.
The Future Of Poker In Kentucky
Kentucky does not presently have any live poker rooms, or any casinos for that matter, in spite of their historically being a hotbed for gambling. Gambling in Kentucky is limited to their horse tracks and their lottery at present.
However there is a move afoot to build some casinos in the state, although a bill which would seek to allow for that got defeated. However this may happen at some point in the future. In the mean time, Kentucky residents who wish to play live poker have to travel to other states to do it.
Depending on where in the state you live though, you may not need to go very far, for instance the Horseshoe Southern Indiana is just outside Louisville in Elizabeth, IN, and features a very nice card room with 30 tables. (5)
The prospects of an online poker bill look dim right now though, as there does not seem to be any interest in that. It’s expected that a casino bill would come first, but the horse racing business is so jealously protected that people tend to fear any sort of competition, so online poker becoming regulated in Kentucky is at best quite a ways off.
Players from Kentucky need not travel to another state or wait for regulated poker to happen some day though, as BetOnline is very willing to accept online players from Kentucky and one of the only rooms I would personally recommend if you reside in this location. Playing online poker is clearly against the law in many states, but with Kentucky’s gambling laws aimed at operators and not players, I can’t imagine any reason why anyone in Kentucky who wishes to play poker online would hesitate to do so.
If you already have a BetOnline account, options like ACR – and my personal favorite, Ignition Poker – are also available at your leisure. Ignition is a newcomer to the scene, but don’t let them fool you – they’re actually backed by the same guys who owned Bovada, who were recently acquired by them in 2016. Check out our Ignition Review today for more info on this room.
References:
(1) Kentucky Court Overturns Seizure of Gambling Sites
(2) Kentucky Revised Statutes, Chapter 528
(3) Promoting Gambling In The Second Degree
(4) 528.010 Definitions For This Chapter
(5) Horseshoe Casino Southern Indiana
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The state of Kentucky is attempting a combo bill in 2020 that would legalize and regulate both online poker and online/mobile sports gambling. It’s an uphill battle, but optimism is high for the state to expand its gambling industry after nearby states have already greatly beefed up theirs.
Under the pre-filed legislation, the Kentucky Lottery Corporation would regulate online poker. Persons seeking to offer real-money online poker to individuals within state borders to those 18 years of age and older would need a license from the Lottery Corporation.
It would cost $250k for an online poker license, with a $10k annual renewal fee. In addition to the licensing fee, a gaming fee of 6.75% of net poker revenue would be imposed on each online poker vendor, according to the bill. That’s arguably an industry-friendly tax rate for iPoker revenue.
Friction for PokerStars?
The worldwide leader in online poker is a platform called PokerStars. It recently launched in Pennsylvania, following a launch in New Jersey several years ago. In late 2018, PokerStars scored a victory in the Kentucky Court of Appeals over a whopping $870.7 mm judgment against the poker site. Kentucky went after the company in court for its activity in offering online poker to Kentuckians before Black Friday in April 2011. Kentucky said online poker was against state law. The case took years to play out.
According to a report from the Louisville Courier Journal after PokerStars’ victory on appeal, the state Justice and Public Safety Cabinet indicated it would ask the Kentucky Supreme Court to weigh in. The state’s high court hasn’t done so and it’s unclear if it ever will. With that said, the Kentucky regulated online poker bill appears to make reference to this situation. Under the bill, it appears that PokerStars could be licensed to offer online poker in Kentucky, despite the rocky history with the state.
“Award of an online poker license under this section shall not absolve any person of any liability which has or may be incurred due to litigation with the Commonwealth over internet poker domain names,” states the bill. “Any person who has been issued a license under this section shall have the license suspended by the corporation if a final judgment is issued against the person for the improper use of internet domain names. The license suspension shall continue until all fines and fees assessed under the judgment are fully paid.”
The legislation also states that online poker vendors would be ineligible if they have “been convicted of a violation of the Unlawful Internet Gambling Enforcement Act of 2006.” It’s worth noting that PokerStars was not found to have violated UIGEA. It settled with the federal government earlier this decade without admitting to wrongdoing, paving the way for future licensure by states.
PokerStars’ parent, The Stars Group, recently agreed to merge with FanDuel parent Flutter Entertainment. The conglomerate could also be involved with Kentucky online sports gambling. Poker and sports betting are considered to have a similar customer base.
What’s poker under the bill?
Regulated Kentucky poker sites would be akin to their counterparts in Pennsylvania and New Jersey. Poker platforms could potentially offer “any form of poker” — which would include all the staples such as hold’em and Omaha.
The bill would not allow live, brick-and-mortar poker rooms in the state.
The legislation would also seek to keep poker in Kentucky as strictly skill based.
“Online poker shall not include video lottery terminals or slot machines using electronic representations of cards in a game of chance in which skill does not play a part,” states the proposal.
The Lottery could theoretically, under the bill, place limits on the stakes in poker games. That’s unlikely to be relevant to Kentuckians, as there really isn’t a large market for high-stakes games. Nearly one in five Kentuckians live in poverty. Kentucky poker sites would be lucky to have vibrant low-stakes games, given the intra-state nature of the player pool. Kentucky has about 4.5 mm people.
How many Kentuckians could be online poker players? Well, the lawsuit against PokerStars provides a figure on a possible ceiling. Kentucky was seeking to recover poker losses from more than 34k of its residents. That player pool existed between 2006 and 2011.
Those 34k Kentuckians who played on PokerStars lost an average of $8,500 during that roughly five-year time frame, according to the state.
Of course, 34k Kentucky online poker players doesn’t mean anywhere close to that number of players were active simultaneously. On PokerStars in Pennsylvania, the site is currently peaking at a little more than 1k active players, according to PokerScout. The Keystone State has 12.8 mm people.
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