Originally Posted by Elli

Simple scenario:

1) .xxx is made available.
2) politician bent on "making the internet safe for children" will legislate that any adult content must be on an .xxx domain.
3) credit cards will refuse to process for sites that are non-compliant
4) ISPs wanting to offer only "family-friendly" internet access will filter out all .xxx access.

and behind all this, in the scramble to comply, a few big players with gobs of money will buy up the majority of .xxx domains, willing to sell them off at a reasonable (gah) price.

Companies that own various domains must battle it out: ie: Company A owns sex.net and Company B owns sex.com and both are adult, so they both need the .xxx domain, but only one can get it.