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Second Life's Online Casinos

In the United States, the FBI is now a part of the online casinos investigation as a way to allow the government a way to enforce the Unlawful Internet Gambling Enforcement Act (UIGEA). The FBI is currently looking into Linden Lab, the creator of the virtual world Second Life online casinos. Because of the UIGEA, the FBI is investigating the company to asses the legality of their business and how they operate their online casinos.

As for the company, Linden Lab is fully cooperating with the FBI’s investigation, and according to the current Vice President, Ginsu Yoon, they are willing to accommodate suggestions from the FBI on how to make their business operate within the guidelines of the UIGEA. Because the act is still so new, many companies are in the grey area on where their businesses stand in relation to the act. The US authorities have yet to really provide the answers most online casinos need to make their businesses fully legal.

Yoon went on to elaborate on their cooperation, “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.”

Part of why Linden Lab is unsure of where they stand centers on the fact that their online casinos do not directly use US dollars to gamble. Instead, the company allows players Linden dollars, which most likely still doesn’t make them legal warns some lawyers. According to gambling law, gambling occurs when something of value is wagered—in this case the Linden dollars spent in the virtual world and online casinos count as value.