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FRANKFORT, Ky. (AP) Settlement negotiations are under way in a legal dispute over whether online casinos can be forced to block access to Web sites in states that object to them.

Justice Cabinet spokeswoman Jennifer Brislin confirmed Friday morning that lawyers for Kentucky and online casino operators are holding talks in advance of a court hearing scheduled for 3:30 p.m.

EDT.

Gov. Steve Beshear asked a judge to cut off access to 141 gambling Web sites by giving Kentucky control of the domain names.

The move affects some of the world's most popular gambling sites.

Beshear said online casino operators pay no tax revenues to the state and provide no jobs.

Brislin said state lawyers want the online casino operators not only to block access in Kentucky but also to pay an unspecified amount of financial damages for lost revenue.

(Copyright 2008 by The Associated Press. All Rights Reserved.) APNP 09-26-08 1136CDT | save this article / add to your favorites list