The Kentucky domain seizure case of October 2008 has shaken the online gambling industry, causing major casino software providers to reevaluate their exposure to U.S. players. One of the largest reactions came from Microgaming, a leading global provider of online casino software, which announced it would stop accepting all new U.S. player registrations beginning Monday, November 10, 2008.
This decision marks a major milestone in the fragmentation of the U.S. online gambling market and signals growing legal pressure on offshore casino operators.
Why Microgaming Stopped Serving New U.S. Accounts
Fallout From the Kentucky Domain Seizure
In October 2008, Kentucky state officials attempted to seize 141 gambling-related domain names, arguing they were illegal devices being used to facilitate online wagering by Kentucky residents. This unprecedented state-level action targeted multiple brands, but Microgaming was repeatedly referenced during hearings, despite being primarily a software supplier rather than an operator.
Following the legal threat, casino marketing group Brightshare announced that Microgaming would block all U.S. registrations to avoid further risk. Other major affiliate and casino groups quickly followed suit.
Which Casinos Are Affected?
Casinos Powered or Marketed Through Microgaming That Block New U.S. Players
Jackpot Factory Brands (marketed by Brightshare)
- Jackpot Factory
- Additional branded casino network sites
Referback-Marketed Casinos
- Jackpot City
- Cool Hand Poker
- Jackpot City Online
- Lucky Nugget Online Casino
- River Belle Online Casino
- The Gaming Club Casino
Vegas Affiliates Casinos
(began blocking U.S. players as of Nov. 10, 2008)
- Grand Hotel Casino
- Colosseum Casino
- Vegas Joker Casino
- Vegas Country Casino
- Vegas Slot Casino
- Vegas 7 Casino
Fortune Affiliate & Fortune Lounge casinos
also adopted the same policy and now excludes new U.S. player signups.
In short, nearly all Microgaming-powered casinos have stopped accepting new U.S. accounts.
What About Existing U.S. Players?
At the time of the announcement, Microgaming confirmed:
- U.S. players with existing accounts before November 10, 2008, may continue playing normally
- Deposits and withdrawals remain available, unless individual casinos choose to restrict them later
However, industry analysts expect that Microgaming may eventually block all U.S. player activity, including existing customers, which could significantly impact revenue and affiliate earnings.
The Legal Details – Kentucky Court Ruling
The seizure order issued by Judge Thomas Wingate required targeted websites to:
- Block access to Kentucky players within 30 days
- Provide proof of geographical blocking technology to avoid forced forfeiture
If a website could demonstrate successful geo-blocking, the court would lift the seizure threat.
This ruling acted as a wake-up call: if state-level authorities can forcibly seize gambling domains, any international operator serving U.S. traffic could become a legal target.
What Happens Next?
The Microgaming withdrawal is expected to encourage more suppliers and casino operators to:
- Reduce or stop operations with U.S. residents
- Strengthen legal compliance and geo-blocking protocols
- Explore European-regulated markets instead of relying on U.S. traffic
Meanwhile, many U.S. gamblers are searching for alternative platforms that still accept U.S. players.
SEE LIST OF ONLINE CASINOS ACCEPTING USA PLAYERS
Final Takeaway
Microgaming’s decision to block new U.S. players marks one of the most significant U.S.-market exits in online gambling history. Although existing accounts remain active for now, the trend suggests that full discontinuation is only a matter of time. The Kentucky seizure case set a powerful legal precedent — one that continues to reshape online gambling access across the United States.
