FBI Pays Visit To Online Casino in Second Life

April 5, 2007
In a bid to clarify the legal status of in-game, user-created casinos, Second Life publisher Linden Labs recently invited agents of the Federal Bureau of Investigation to visit the online game's virtual world.

Linden execs apparently became concerned following a U.S. crackdown on off-shore gambling casinos. Former Linden Labs general counsel Ginsu Yoon subsequently asked the FBI for clarification on what constitutes an online casino, but has yet to receive clear rules from federal authorities. Said Yoon:
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. It's not always clear to us whether a 3-D simulation of a casino is the same thing as a casino, legally speaking, and it's not clear to the law enforcement authorities we have asked.

If the FBI deems user-created casinos run in the SL world to be the equivalent of actual casinos, Linden Labs could be charged under the 1970 Illegal Gambling Business Act or the more recent Unlawful Internet Gambling Enforcement Act. The UIGEA addresses off-shore gambling by restricting financial transactions resulting from online action. This could potentially affect Second Life since the popular MMO allows players to convert between virtual "Lindens" and real-world currency.

Even if the FBI issued a negative ruling, however, enforcement could be problematic. That's because the Second Life game software affords users wide-ranging freedom to create their own content.

CM: So could the agents serve an arrest warrant in-game? Would investigations done while playing SL be admissible in court? While illegal content is against the rules, it wouldn't be difficult for users to create "patsy" accounts to take the fall if a casino is shut down.

-Reporting from Canada, GP Correspondent Colin "Jabrwock" McInnes

Comments

Submitted by MDR (not verified) on Fri, 04/06/2007 - 04:53.
There already has been a change in SL regarding Casinos. Casinos now can't put their presence on land listing (30l a week) or advertise (50l a week, though I saw as much as thousands of L per week) anymore. I don't know if users can put casinos in their favorite places of their profiles.

MDR

Submitted by cullarn (not verified) on Fri, 04/06/2007 - 04:08.
lol actually the fbi just wanted to see if they could get their bosses to pay them while they play games =p

Submitted by Diceman (not verified) on Fri, 04/06/2007 - 01:03.
@Dog welder so in conclusion the us kills enterprise in other countries without so much as signing a few papers over here?whatever happened to free enterprise?

Sometimes i think the US is a communism that puts on a show to look like a democracy >.>.

also are native american reserves free of most US laws/acts or is the whole name reservation just a ploy to make them feel like they are free of Americas douche bag legislation?

Submitted by theCurse (not verified) on Thu, 04/05/2007 - 17:58.
Wookiee,
What? Like through a spirit quest?

Submitted by Wookiee (not verified) on Thu, 04/05/2007 - 16:26.
What if a SL user can prove Native American descent?

Submitted by Dog_Welder (not verified) on Thu, 04/05/2007 - 12:57.
@Diceman -- currently the U.S. authorities can not touch offshore gambling sites. However, the Safe Harbor Act that was passed last year has a provision where NO bank or money transfer institution doing business in the U.S. can transfer money to a "gambling web site" or "online gaming parlor." All of the major wire transfer services (i.e. NetTeller) have thusfar complied with this law as well as all banks.

My prediction: since Second Life money can be converted to real cash, the FBI will be able to apply the Safe Harbor Act to Second Life.

Submitted by Diceman (not verified) on Thu, 04/05/2007 - 11:32.
more to the point how does the FBI/US even touch gambling sites in other countries?In any case they cant really do anything if they wanted to second life as all linden labs needs to do is move to Canada and such.

Submitted by The FBI Must be Really Bored « Professor Marc J. Randa (not verified) on Thu, 04/05/2007 - 11:20.
[...] April 5th, 2007 It appears that the FBI is sending agents into the online game, “Second Life” to investigate the virtual casinos there. [...]

Submitted by Dan (not verified) on Thu, 04/05/2007 - 08:54.
Wait so do the casinos make money from real money or in game money? If fake then the FBI just wants some quick cash. Greedy people.

Submitted by Terminator44 (not verified) on Thu, 04/05/2007 - 09:56.
Perhaps the FBI didn't answer because THEY don't even know how the laws would appply to an MMO. I don't think the issue has ever come up before. Even if they could fit an operation in SL that would fall under the gambling laws, they would still have to figure out WHO they arrest for it. As Jabrwock pointed out, a lot of user-created content is entirely beyound the control of those who moderate the world.

I forsee a lot of debate over this issue.

Submitted by Jabrwock on Thu, 04/05/2007 - 10:04.
@Dan

They make money from virtual money (Lindens), but you can convert that to real dollars.
-- If your wiimote goes snicker-snack, check your wrist-strap...

Submitted by bits bytes pixels & sprites » Archives » Wee (not verified) on Thu, 05/03/2007 - 09:32.
[...] FBI raids casino in Second Life [...]

Submitted by Chris (not verified) on Sun, 02/10/2008 - 18:27.
I guess we're lucky we didn't have VIRTUAL FBI agents at the virtual casino...lol.

Submitted by eric (not verified) on Sun, 03/16/2008 - 12:17.
Yea they just can't stand to see anything make money without getting taxed.Paying taxing on gambling winnings is just absurd to me though in the first place!
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