In Kentucky, a case involving the seizure and potential forfeiture of 141 internet gambling domain names has the potential to set a precedent hundreds of miles east as well as around the world. The way that the State of New York may handle disputes with online retailer Amazon as well as iTunes distributor Apple could hinge on the outcome of the case in the Bluegrass State.
One of the central organizations involved on the ground in Kentucky is the Interactive Media Entertainment and Gaming Association, or iMEGA for short. Its Chairman, Joe Brennan, described why the State of New York and Amazon may soon be at odds: “What New York is trying to do is look for new revenue streams. They see the internet as an untapped source for revenue. What you have is the state legislature in New York that is now set to establish the tax policy for the whole of the internet by treating affiliate marketers as full extensions of the companies they represent.” Affiliates drive traffic to Amazon.com through links placed on their own websites. Some of these affiliates are based in New York, even though Amazon itself has no physical presence.
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