Thursday, April 05, 2007

FBI investigators have visited Second Life's Internet casinos at the
invitation of the virtual world's creator Linden Lab, but the U.S.
government has not decided on the legality of virtual gambling. "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. Second Life is a popular online virtual world with
millions of registered users and its own economy and currency, known as the
Linden dollar, which can be exchanged for U.S. dollars. 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. The FBI and the U.S.
Attorney's Office for Northern California declined comment. Hundreds of
casinos offering poker, slot machines and blackjack can easily be found in
Second Life. While it is difficult to estimate the total size of the
gambling economy in Second Life, the three largest poker casinos are earning
profits of a modest $1,500 each per month, according to casino owners and
people familiar with the industry. The surge in Second Life gambling
coincides with a crackdown in the real world by the U.S. government, which
has arrested executives from offshore gambling Web sites. Most lawyers agree
that placing bets with Linden dollars likely violates U.S. anti-gambling
statutes, which cover circumstances in which "something of value" is
wagered. But the degree of Linden Lab's responsibility, and the likelihood
of a any crackdown, is uncertain.