The Interactive Media Entertainment & Gaming Association (iMEGA) has announced that it has petitioned the Kentucky Court of Appeals to block the decision to allow the seizure of gaming domain names.
In September, governor Steve Beshear spearheaded a movement to take 141 gambling domain names.
This was then upheld by Judge Thomas Wingate, who said that companies had a limited amount of time to make their services unavailable to Kentucky residents before the domains were seized permanently.
However, the iMEGA is claiming that the state's lawyers are looking to protect its own gaming industry from competition and acquire large amounts of money in penalties from the firms in question.
Joe Brennan, chairman and chief executive officer of iMEGA, commented: "If this is allowed to stand, you'll see other actions like this, targeting other segments of internet media, at the state and local level, both here and abroad."
Among the gaming companies that found their domains seized were UltimateBet.com, DoylesRoom.com, CakePoker.com and 888.com.