Second Life shuts down in-world gambling

**jetset** · 26th July 2007, 12:35 PM

SECOND LIFE SHUTS DOWN VIRTUAL GAMBLING

US-based Linden Labs cites legal constraints

The creator of the popular virtual world 'Second Life', Linden Labs has decided all in-world casinos and virtual gambling enterprises are to be discontinued - apparently due to legal concerns.

The move will not only disappoint Second Life gamblers who wager with Linden Dollars in the venues, but will curtail the revenues earned by Linden from those owning casino-style islands in the game, the owners of which are apparently some of the top contributors to the Linden Lab coffers through currency fees and land rental.

Readers may recall earlier reports that Linden had asked the FBI for guidance on the issue of legality of Second Life wagering, and it appears from the latest policy decision that the feedback from the feds has been negative. Linden's new Terms of Service state the company will comply with all subpoenas from US law enforcement demanding information.

The Second Life blog goes into some detail in explaining the new policy, advising that in addition to no longer accepting any classified ads, place listings, or event listings that appear to relate to simulated casino activity, Linden 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.

"Because there are a variety of conflicting gambling regulations around the world we have chosen to restrict gambling in Second Life, the blog announcement informs. "Because this is an evolving area of law, we may continue to adjust and clarify this policy as we receive feedback from the community and from legal authorities, or as new regulations, industry practices and technology solutions come into effect.

The blog then goes on to detail the blanket policy 'outlawing' any form of Second Life gambling, specifying games and type of venues affected, and including sports betting.

"Linden Lab will actively enforce this policy. If we discover gambling activities that violate the policy, we will remove all related objects from the inworld environment, may suspend or terminate the accounts of residents involved without refund or payment, and may report any relevant details, including user information, to authorities and financial institutions," the owners warn.

The ban applies immediately, and Linden Labs will not accept responsibility for any monetary losses incurred as a result.

**winbig** · 26th July 2007, 11:20 PM

What's next, are they going to shut down POGO gambling games as well? There's thousands of people playing blackjack & poker there at any given time.

**cynthial** · 27th July 2007, 12:28 AM

This is just surreal and no pun intended. Linden dollars are not real currency are they? It is just like Monopoly Money, yes? I can't wrap my head around the stupidity of this whole thing. My nephew plays Pokemon where the winner gets the pick of the losers cards and these darn cards do have value. Do we need to apply for a skill based carve-out for these 8 year olds? It is past absurd now. I want all of the bloated, bureaucratic, bigoted Storm Troopers out of Washington and out of my private life.

**SlotsWizard** · 27th July 2007, 12:32 AM

Originally Posted by jetset

it appears ... that the feedback from the feds has been negative

Imagine that.

Originally Posted by cynthial

This is just surreal and no pun intended. Linden dollars are not real currency are they? It is just like Monopoly Money, yes? I can't wrap my head around the stupidity of this whole thing. My nephew plays Pokemon where the winner gets the pick of the losers cards and these darn cards do have value. Do we need to apply for a skill based carve-out for these 8 year olds? It is past absurd now. I want all of the bloated, bureaucratic, bigoted Storm Troopers out of Washington and out of my private life.

You can buy Linden dollars with real money, have your way with them, and then convert them back into real money. It's a microscopic scale though (L$500 = US$1 or something like that).

**winbig** · 27th July 2007, 12:37 AM

Oh yea, not to mention all of the slots on pogo....they have quite a few.

**cynthial** · 27th July 2007, 12:39 AM

Thanks for the clarification. If the money has some value it does clear up some of my confusion. So were the virtual players or whatever they are called able to actually make a profit if they hit big on the virtual games and so in reality it was a sneaky way of working around the UIGEA?

**SlotsWizard** · 27th July 2007, 01:09 AM

Originally Posted by cynthial

Thanks for the clarification. If the money has some value it does clear up some of my confusion. So were the virtual players or whatever they are called able to actually make a profit if they hit big on the virtual games and so in reality it was a sneaky way of working around the UIGEA?

Probably. And I'm not 100% certain but I think the average joe could also set up a virtual casino and collect Linden Dollars whenever people played at it. Maybe not, but this part of jetset's post led me to believe that:

The move will not only disappoint Second Life gamblers who wager with Linden Dollars in the venues, but will curtail the revenues earned by Linden from those owning casino-style islands in the game, the owners of which are apparently some of the top contributors to the Linden Lab coffers through currency fees and land rental.

**SlotsWizard** · 27th July 2007, 01:14 AM

Originally Posted by winbig

Oh yea, not to mention all of the slots on pogo....they have quite a few.

I've always wondered how Pogo gets away with it. The truly free games, even those with jackpots - fine. But Club Pogo, a paid subscription, doubles (up to $4999) the jackpots and gets you access to games which people with free accounts cannot access, and most of those games have jackpots.

How is that not gambling?

Granted it's only $40 a year or however much. But how can the usual disclaimer phrase, "A purchase will not increase your odds of winning", apply to the games that people with free accounts can't access? They must be aware of some sort of loophole. Maybe because people can get a free trial of Club Pogo, is that the loophole that makes it legal?

**just play** · 27th July 2007, 01:54 AM

Originally Posted by SlotsWizard

I've always wondered how Pogo gets away with it. The truly free games, even those with jackpots - fine. But Club Pogo, a paid subscription, doubles (up to $4999) the jackpots and gets you access to games which people with free accounts cannot access, and most of those games have jackpots.

How is that not gambling?

Granted it's only $40 a year or however much. But how can the usual disclaimer phrase, "A purchase will not increase your odds of winning", apply to the games that people with free accounts can't access? They must be aware of some sort of loophole. Maybe because people can get a free trial of Club Pogo, is that the loophole that makes it legal?

I seem to think no one wins at Pogo. I have played there for years and talked to hundreds/thousands of people and no one knows ANYONE who have ever hit a jackpot there.

**SlotsWizard** · 27th July 2007, 02:22 AM

Originally Posted by just play

I seem to think no one wins at Pogo. I have played there for years and talked to hundreds/thousands of people and no one knows ANYONE who have ever hit a jackpot there.

People do win but VERY VERY VERY rarely. My mother won a $2300 jackpot a few years ago on Payday Freecell. It annoyed me because I had been playing there for quite a while before she ever started playing there, in fact I was the one that turned her on to it. And I never won anything, except a couple of screensavers/desktop backgrounds - BFD!