April 4th, 2007
FBI visits Second Life
Reuters is reporting that Second Life's makers, Linden Lab, have invited the FBI into the virtual world to investigate and advise on the possible illegality of gambling in-world:
"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.
The rise in gambling and virtual casinos in Second Life goes against the recent trend of US authorities cracking down on illegal online gambling sites, both at home and abroad. Whilst no clear direction has yet been given by the US government on the issue of virtual-currency gambling, it's highly possible that Linden Lab could find itself the wrong side of the law — as Linden dollars can be exchanged back into US dollar currency.
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.
Related post: Coming soon: taxation of virtual assets
Steve O'Hear is a London-based consultant, educator, and journalist, focussing on the Internet and all aspects of digital technology. See his full profile and disclosure of his industry affiliations.
