FRANKFORT, Ky. -- The Court of Appeals yesterday blocked Franklin Circuit Court from proceeding with Gov. Steve Beshear's lawsuit against 141 gambling Web sites until appellate judges hear oral arguments and rule on the matter.

Internet gambling and domain name trade groups asked the Court of Appeals to intervene after Franklin Circuit Judge Thomas Wingate ruled last month that he has the right to decide whether control of the Web sites must be forfeited to Kentucky.

The order issued yesterday prohibits Wingate from holding a forfeiture hearing scheduled for Dec. 3.

Oral arguments are scheduled for Dec. 12 before the Court of Appeals.

Beshear's suit attempts to force the sites to either block access by Kentucky users and pay damages or relinquish control of their Web site domain names.

Beshear has said the sites are "leeches on our communities" that are taking money away from Kentucky's horse racing industry.

Defense attorneys have argued that the state does not have jurisdiction because the Web sites are owned by companies located outside the state and, in some cases, outside the country.

"This ruling will permit the Kentucky Court of Appeals to carefully deliberate on these important issues concerning the power of state government to regulate Internet commerce," said Kenyon Meyer, a Louisville attorney representing the Washington, D.C-based Interactive Media Entertainment and Gaming Association.

Justice Cabinet spokeswoman Jennifer Brislin said yesterday that the cabinet was expecting the Court of Appeals order.

This article is a reprint from the Kentucky Courier-Journal. To view the origianl story, click here.