Does anyone know what's up with Gibraltar? It seems like I see a lot of shady sites (gambling, adult, rx, etc...) as being hosted there. I also came across a ringtone site who hosted thousands of mp3's on their server. I'm guessing this is illegal in the U.S., but somehow they've managed to get around it by hosting in Gibraltar.
Each country has their own laws and enforcement policy and people with shady business will flock to the places that have the least possibility of getting in trouble.
Yep, like many others "no tax" jurisdiction offshore countries it’s heavily used by individuals, trusts or corporations for business activities. Though I must emphasize it’s fully legal, and nothing wrong with that.