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You can take this site as an example if you wish. Browse through the sites linked in many many threads in the link exchange and directory forums, take a look at some of the links in members signatures. You will find every variety of site linked out from this site many times, it doesn't seemed to have harmed WebmasterTalk in any way shape or form.
Again take the common sense logical approach.
Why should a site be penalised because they have some links to what some consider "undesirable" ?
If the site is using a practice that could earn them a ban, then give some careful consideration to whether you want "association by proxy" to those tactics. But other than that it is YOUR pages and YOUR choice who and where you get links from or have links to.
It is NOT up to the SEs to run your site for you and the engineers have no desire to produce automated penalties for sites/pages that are doing nothing other than linking to what the webmaster wants to.
This STUPID notion that SEs are some all powerful, vengeful entities waiting to punish a site for the oddest things people dream up simply has to stop at some point.
Use your own sense of judgement and morals for where to get links from and where to link to and at the end of the day, if you only ever link to sites that are useful for your visitors, who is to say you are wrong? If you consider that a site where you could get a link from will send your site/page some useful visitors then get the link.
The consideration is as always ignore the search engine aspect and think of your visitors
The only proviso I would add is; By linking to gambling and "adult" sites some of your pages may get filtered out by users setting on some SERPs and they may get blocked by browser content filters and corporate proxy servers and firewalls.
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