• Reuters, Thursday, April 5, 2007 10:45 AM

The virtual world Second Life presents problems for the Federal Bureau of Investigation and anyone else with a vested interest in upholding the law. Currently, the FBI is investigating casinos in Second Life--at the invitation of Linden Lab, the game's creator--but the organization has made no ruling as to the legality of so-called "virtual gambling."

For one thing, gamblers earn Lindens, not U.S. dollars. For another, the exchange of money in these casinos is relatively insignificant, given that the cost of goods in the virtual world is still incredibly cheap (Reuters says casino owners make around $1,500 per month). But the fact that Lindens can be converted into U.S. dollars clouds the issue. Real people are making real money in Second Life, which also includes gamblers, purveyors of virtual world casinos, and of course, Linden Lab, by extension.

But the good times may not last, as the game's creator encourages a U.S. government decision. "We have invited the FBI several times to take a look around in Second Life and raise any concerns they would like," said Ginsu Yoon, Linden Lab's vice president for business affairs. Second Life has not as yet received a clear ruling from U.S. authorities. Many lawyers tend to agree that placing bets with Linden dollars violates U.S. antitrust laws.

Read the whole story at Reuters »