This is one for the legal books.

I'm not sure exactly how a ruling like this can happen. Maybe it is completely legal, but it just sounds sooooo wrong.

Anyway, the state of Kentucky has taken a page out of the patent industry's handbook and has used the courts to seize the domain names of 141 gambling sites.

Holy crap! If this stands, it could mark the end of the online gambling industry - at least the end of a somewhat-organized industry.

Just as Bodog had it's domain name stripped last year after losing a patent lawsuit, the state of Kentucky has successfully persuaded a stupid judge that since the sites in question are taking US business in contradiction of American law, they should lose their domain names.

As the Guardian notes: "In a statement welcoming the order, Governor Beshear said: "The owners and operators of these illegal sites prey on Kentucky citizens, including our youth, and deprive the Commonwealth of millions of dollars in revenue. It's an underworld wrought with scams and schemes." He described them as "leeches on our communities"."

You can actually see the hypocrisy dripping off this quote as it is widely known that Kentucky really is only interested in protecting its horseracing industry, as well as its proposed new casinos.

The story mentions that PokerStars will be sending a legal team to fight this ruling. According to the article, "Insiders believe they will side-step arguments about whether or not taking cash from US players is in breach of US law."

Yeah, just as they thought this initial ruling would never happen.

Look, I am not a lawyer, but I have a bit of experience in dealing with arcane legal issues in the American south. Let me tell you something: The law doesn't matter down there. Common sense isn't anywhere in sight either.

So don't expect this situation to go away quickly and easily.

Already, there is news that at least one domain registrar has already caved. eNom has already cut its ties with several domains.

Why any site that accepts wagers would deal with an American registrar is beyond me.

Which reminds me to ask the Sys Admins at SportsDirect to immediately switch our domain registrars regardless of whether we take bets or not. It's just too risky.

For a list of the 141 sites that are at risk, click here.

The interesting question is how this latest salvo in America's war against un-American online gambling will affect America's ongoing WTO dispute with, well, the rest of the world.

The situation I can't get out of my head is this... How would American distillers and breweries react if some podunk province in Iran seized all of their domains due to Islam's banning of alcohol?

It is a fairly similar situation, and I imagine the fallout would not be pretty.