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Saturday, April 7, 2007

FEDERAL AGENTS CHECKS GAMBLING IN VIRTUAL WORLD

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FBI investigators have visited Second Life's Internet casinos at the invitation of the virtual world's creator Linden Lab, but the US 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 US dollars.

Yoon said the company was seeking guidance on virtual gaming activity in Second Life but had not yet received clear rules from US authorities.

The FBI and the US 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 US government, which has arrested executives from offshore gambling Websites.

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.

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