Jul 26

Second Life Drops the Hammer On Gambling

Category: Gambling by Stone Culdesac

Looks like the end is in sight for people earning a living using gambling and casinos in Second Life as Linden Labs has posted a new policy concerning gambling inside SL.

While Linden Lab does not offer an online gambling service, Linden Lab and Second Life Residents must comply with state and federal laws applicable to regulated online gambling, even when both operators and players of the games reside outside of the US. And, because there are a variety of conflicting gambling regulations around the world we have chosen to restrict gambling in Second Life as described in a revised policy which is posted in the Knowledge Base under “Policy Regarding Wagering in Second Life”.

What kind of wagering games are affected?

The policy applies to gambling games which:

(1) (a) rely on chance or random number generation to determine a winner, OR (b) rely on the outcome of real-life organized sporting events,


(2) provide a payout in

(a) Linden Dollars, OR

(b) any real-world currency or thing of value. Source: Wagering In Second Life: New Policy

This is because of an FBI Investigation from April of this year in which they were looking at the legality of online gambling within the virtual world, as noted in a post from Techcrunch. In a post about the investigation in April from Techcrunch, Linden Labs told them the following:

“We have invited the FBI several times to take a look around in Second Life and raise any concerns they would like, and we know of at least one instance that federal agents did look around in a virtual casino,” said Ginsu Yoon, until recently Linden Lab’s general counsel and currently vice president for business affairs.

Yoon said the company was seeking guidance on virtual gaming activity in Second Life but had not yet received clear rules from U.S. authorities. Source: G-Men Visit Second Life Casinos, Stay for the Brothels

At the time Valleywag noted that it was still some good publicity because it makes Second Life look more and more like people are pulling in the cash.

But look more carefully. Second Life’s architects, at Benchmark-backed Linden Lab, invited in the FBI on several occasions; and they’re the ones behind this latest news. It’s not like the Bureau could be bothered to call a press conference. Fact is that this counts as good publicity for the over-hyped and under-whelming 3D environment. Any controversy, over illegal gambling or copyright infringement, creates the impression that Second Life is a vibrant alternative society, and economy. Which it’s not. The FBI probably isn’t making an issue out of virtual-world gambling, because the casinos are so empty (see picture). Source: Second Life Calls in the Feds

I wonder if Nick Denton even went in world?

Popularity: 1%

4 Comments so far

  1. Second Life News « The Grid Live July 27th, 2007 6:38 pm

    [...] Second Life News Second Life Casino Owner Left Scrambling After Gambling Ban This Second Life entrepreneur complains that Linden Lab was more than happy to take his money for months, even after the U.S. banned Internet gambling, and then Linden Lab’s shut the casinos down abruptly Wednesday, Second Life Drops the Hammer On Gambling. [...]

  2. [...] was unclear whether the ban on gambling caused any of this, as casino owners are trying to get some of the money they rightly feel that [...]

  3. The Grid Live » The Inspire Space Park December 31st, 2007 12:32 pm

    [...] time, so they could hardly ever get more than 8 avatars in it at one time. But since the Lindens banned gambling in Second Life, the casino has been shut down and this sim has really taken off. The traffic has gone from 2,000 [...]

  4. [...] Second Life Drops the Hammer On Gambling Looks like the end is in sight for people earning a living using gambling and casinos in Second Life as Linden Labs has posted a new policy concerning gambling inside SL. [...]

Leave a comment