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Online Casinos Federal Regulations in Virtual Community

The United States government is just beginning to come to firm decisions regarding what classifies as online casino gambling, and which internet activities are in fact safe from the Unlawful Internet Gambling Enforcement Act. Since last November the U.S. government has spent enormous time and man-power to investigate all companies operating anywhere even near the fringes of the online casinos industry. The Second Life virtual community from Linden Labs has cooperated with the U.S. government throughout the investigation and has actually sought the advice of the FBI on how Second Life could maintain the virtual community while complying with all U.S. legislation regarding online casinos and betting activity.

Lucky for Second Life enthusiasts, the government has ruled that the virtual community itself (including the buying and selling of virtual property) is legal – but the line has been drawn at the virtual online casinos where players could spend Linden dollars. A recent announcement from Linden Labs states that all virtual online gambling activities are no longer legal and will no longer be supported within the Second Life community. This ban on virtual online casino gambling is an international ban from Linden Labs, not just those U.S. players participating in the virtual community.

Linden Labs cited the ever-changing nature of the online casino and gambling industry as the reason for the ban. Because every country has different regulations and restrictions concerning online casinos and gambling, Linden Labs has chosen to ere on the safe side and stop all questionable activities.

The Linden Labs blog comments on the new online casino virtual ban:
"Because there are a variety of conflicting gambling regulations around the world we have chosen to restrict gambling in Second Life. 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.

"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 blog serves as a clear warning to all of the current virtual online casino companies should they attempt to continue offering in-world gambling activities.