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I think the issue some of you are glossing over is that the "seizure" of the domain is a huge perversion of the law. The casino isn't operating in Kentucky, they are operating in their country. The Kentucky resident chose to access the site in their country.
It's a horrible precedent. It allows one city/county/state to create a law and seize every domain in the world on a .com/.net that breaks their law. A small county in Alabama could create a law banning hardcore images. They would thus be allowed to seize every adult domain with hardcore content on it.
There is a lot of danger to this. Especially to foreigners who run legitimate businesses in their own country and don't break their own laws. The web is global, and some ignorant politicians don't see that. It is completely hypocritical for a politician to ban gambling, and now they are putting good, legitimate businesses who obey the laws of their country out of business.
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