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A good parallel here is to think of the on-line gambling industry - multibillion dollar industry and yet is illegal in most instances in the U.S.
Thus where are most on-line gambling businesses located? ... yep, off-shore!
The same could quite easily happen with much of the adult business; already it has to some extent - many U.S. based on-line adult companies (including some big ones) have long since off-loaded their domain name registrations, hosting, shoots, etc to off-shore entities.
Ron
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Domagon - Website Management and Domain Name Sales
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