Kentucky Names Microgaming as a Problem
Thursday, November 18th, 2010If you have been following the world of gambling then you know how the rules are changing by the week with the US legislators involved. There are some that want gambling to be legalized so they can take advantage of the huge tax revenue dollars avialable. There are equally passionate legislators who believe that they cannot allow gambling to be legalized because of the many other issues that would open the door to. They believe that legalizing gambling would inevitably bring in crime, addiction and corruption to the areas in question. Which side is right has yet to be settled but in the mean time states are fighting it out themsleves. Kentucky is a state that is involved in the debates and just make a move on Microgaming, a leader in the world of software gaming online.
The Commonwealth of Kentucky named Microgaming as an offender of their laws this past week. The lawsuit states that the company is powerful enough and has a notable hold on the various areas- enough of a hold according to legislators that it could potentially come up with a “personal jurisdiction.” This jurisdiction in turn allows them hold poker games, using proprietary software gaming systems, have affiliate programs with their online portals and taking rakes. These activities are detrimental to the state because it is allowing Microgaming to create a monopoly of sorts with their online power and stregth in the gambling market. The state is also citing that Microgaming was involved in illegal activities within their jurisdiction frm September of 2005 until October 2008. All the money customers lost throughout this time is being requested back. This could be a huge amount considering how popular and widespread Microgaming is. The company received millions of dollars thoughout this period of time and asking them to repay the cost of loses to all residents within the state is a huge amount. This could be a monumental case if the state of Kentucky is successful in its request for compensation. Only time will tell what happens, but Kentucky legislators have made it clear that they don’t want gambling to be legalized in their jurisdiction and will do what it takes to keep it out.

