Second Life Bans Gambling

Real world laws, or at least the perception of a real world legal threat, have found their way into the virtual world.  Second Life, an online, virtual, three-dimensional world built and owned by its residents, has banned all forms of gambling. 

Second Life has built up its “resident” base to over eight million, and most enjoy playing the virtual stock market, gambling, investing in virtual real estate, and even using (or operating) escort services.  Residents can accumulate “Linden dollars,” to spend in-game or even convert to real world money at in-game currency exchanges.  Many people actually make solid incomes in Second Life. 

Reportedly feeling the pressure from the watchful eye of the FBI, Second Life has now caved to the UIGEA like many online gambling sites have in the past several months.  The company has always had the rule that customers must obey the laws of their jurisdictions, even though Second Life is a virtual world.  But even if online gambling is legal in the location that a customer resides, it is still outlawed in Second Life. 

For many “residents,” gambling was the only reason to continue to frequent Second Life past the initial try.  Considering the atmosphere of discontent amongst customers on Second Life’s blog, one could reasonably expect a drop in customers in the near future.