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Well, 2257 is as much of a problem for them as illegally distributing stolen content...but when looking around a bit, you'll always find the same pattern:
Domain registrars known for supporting shady business, hosts supporting shady business, sponsors supporting shady business and last but not least the owners hide behind bogus adresses or operate from countries not known for a efficient and clean legal system.
So, in theory, they aren't allowed what they do, but as long as they are funded by sponsors that don't care, find registrars that don't care and hosts that don't care, it's hard to stop them.
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