Microgaming Latest Victim of Kentucky Witch Hunt

For most people the American state of Kentucky is best known for fried chicken and horse racing, but it has also become the leading persecutor of all things online gambling, and now leading online gambling software developer Microgaming has popped up on its radar.

A few months ago Kentucky’s attempt to seize 141 online gambling domains backfired (to the relief of the online gambling firms who own said domains), but that has not stopped the state from continuing its anti-online gambling crusade, Full Tilt Poker and PartyGaming being former targets.

According to reports, Microgaming too must now watch its back as Kentucky is contending that the gambling software giant is guilty of hosting online poker games, setting up accounts and conducting commercial transactions, all of which are illegal under Kentucky law.

As part of its lawsuit, Kentucky is seeking Microgaming to reimburse Kentucky-based online gamblers for money they wagered and lost online between September 29, 2005 and October 23, 2008 at online casinos powered by the online gambling firm.

The state contends that as much as 25 percent of Microgaming’s gross revenues during this period were generated by online gamblers based in Kentucky. But at the end of 2008, when it became all to clear that online gambling was becoming ‘public enemy # 1’ in the U.S., Microgaming pulled out of the country.

Microgaming, which is headquartered in the online gambling-friendly jurisdiction of the Isle of Man, currently provides its online gambling software to 120 online casinos and 40 online poker rooms.