It looks like Kentucky doesn't have the jurisdiction to seize online gambling domain names, after all.

Back in October, Governor Steve Beshear was, as the Kentucky Post reported, "granted an order by a Franklin County Circuit judge last week that transferred the domain names of 141 illegal Internet gambling sites to the Commonwealth of Kentucky in an effort to stop illegal and unregulated online gaming."

But there was a number of objections to the move including the fact that the order was filed in secrecy.

"This is the kind of star chamber proceeding that inspired the framers of our Constitution to place great emphasis that they did on fundamental due process rights," said iMEGA president Edward Leyden at the time.

Well now it looks like the online gambling domain name holders may have scored a victory.

But it looks like the Kentucky seizure attempt has hit a snag.

"A three-judge panel says the state does not have the jurisdiction to move forward with the case because internet domain names are not an illegal gambling device under Kentucky law," a report from www.wtvq.com said.

"The judges also voted two to one to stop a hearing on whether Kentucky can seize the internet domain names."