Yes, the ruling of one state court could have implications for the entire online moneymaking community. It's a little bit confusing, so when thinking about how the Kentucky ruling is going to affect the online gaming world, keep the following ideas in mind.
Establishes State Law Outside the State
One of the more controversial aspects of the Kentucky ruling is that it represents a state trying to apply its laws onto an entity that may or may not be based in the state itself. So, when it comes to doing business on the Internet, and when it comes to gaming on the Internet, if a site operates in multiple states, whose laws is it subject to? It is ultimately a question of jurisdiction, and if the appellate court doesn't strike down the Kentucky ruling, it may scare a number of gaming site operators into shutting down or limiting services.
States' Laws at Odds
As stated above, if the Kentucky ruling stands as is, then a gaming website based in New York might actually be subject to Oklahoma law. Even if the site isn't geared towards Oklahomans, if they use its gaming services, the website might be held responsible. That would create a huge contradiction in states' rights, a part of the US Constitution that is hotly debated and often considered sacrosanct. It is a question and ruling that most likely should be taken up at the Supreme Court level to ensure all legal interests are served.
International Questions
The more pressing issue regarding conflicting laws is that many online gaming websites are based outside of the United States, therefore making it virtually impossible to try and apply Kentucky law to a nation like, say, Antigua. That country and others in the World Trade Organization are likely to hotly object to the Kentucky ruling having any effect on sites based in their territories in other offshore locations.
Effects for Average Gamers
As for the Kentucky ruling's effect on your average, everyday online gamer, they could see a noticeable difference. If online gaming sites are actually considered to be subject to each states' particular laws, then many will consider it too much of a liability and will likely shut their virtual games down completely. Others may simply limit the game and services they offer to try and avoid any new legal liability presented by the precedent of the Kentucky ruling.
More thoughts on online gambling in the US
