32Red gets ALL the benefit of this affiliates marketing efforts, they are losing NOTHING.
I disagree. The domain in question is a very similar domain to 32red.com and also no permission was obtained to frame their site within the very similar domain name.
This guy is trying therefore to pass his site off as indeed 32red and also is trying to profit from having a very similar domain name, hoping that some people putting the domain name 32red.com into their browser, may make a typo and hit his site instead.