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Once again short sightedness on the part of local government is threatening to have far reaching effects that will harm others and their way of life.  New York is currently having a dispute with Amazon, that could have serious adverse effects on online casinos. 

The state of New York is making an effort to establish a precedent that would classify affiliates as an extension of the online retailer for which they advertise.  New York is only doing this to find a way of taxing Amazon, one of the worlds largest online retailers.  Although Amazon is based in Seattle, many of its affiliates are in New York.

This, again, could have repercussions well beyond an isolated case.  Online casinos are one of the biggest markets for affiliate marketing.  If New York is aloud to establish the precedent it could endanger the livelihood of all online casino affiliates in the United States.  At the moment affiliates have been able to avoid the witch hunt involving online casinos in the United States.  If they are all of sudden considered an extension of these online casinos, they will be vulnerable to legal action by the government.    

According to Joe Brennan, Jr., the Interactive Media Entertainment and Gaming Association chairman, likens this case to that of the Kentucky domain name case.  In both instances states are either seeking new forms of tax revenue or attempting to sabotage the businesses that are not under their taxation.  At stake in both examples, is the integrity of the Internet and the future of ecommerce.

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