> Does it really make sense for legacy states to be able to bind transacations on the internet?
Sites like paypal and escrow.com need licenses for every state in the US to carry on business (Mostly called money transmission licenses, but there are a few other names and regulations depending on the state). Yes, it is just as big a compliance nightmare as you'd expect.
So yes, it does happen.
And anyway, as this case shows, if you have customers in a state you need to follow the laws of that state. This is why Pornhub have stopped servicing various states.
Sites like paypal and escrow.com need licenses for every state in the US to carry on business (Mostly called money transmission licenses, but there are a few other names and regulations depending on the state). Yes, it is just as big a compliance nightmare as you'd expect.
So yes, it does happen.
And anyway, as this case shows, if you have customers in a state you need to follow the laws of that state. This is why Pornhub have stopped servicing various states.