Linking to sites that link to porn or casinos, my site getting penalized?

[Ron10]

I have some link exchanges with some sites to get web traffic but when i ran the bad neighborhood link checker, i found that one site links to some casinos and another site has one link to a porn site.  Is this getting me penalized?  should i remove the links to these sites?

Thanks,

Ron

[irvingw]

Not a definite penalty because of that but you're in a place you don't want to be. I would undo your link exchange campaign before you get that dreaded email from Google in WMT. Link exchanges are very easy for Google to detect.

[Ron10]

i only have about 4 reciprocal links, the rest are one way.  I left these reciprocal links up because there is good anchor text in the incoming anchor text.  Does google penalize my site by a small amount if the site i'm linking to links to a casino site?