…Yet another life pleasure and pursuit for some… BANNED…I guess it was bound to happen but what will be BANNED next?
[UPDATE: July2007] For those of you who find logging into the Knowledge Base to be sort of kludgy (and I know it is — we’ll find a better way!), I’ve pasted the text of the policy and FAQ below.
Several months ago we discussed the issue of gambling in Second Life (R) in a blog post, and at that time we let you know that we would no longer accept any classified ads, place listings, or event listings that appear to relate to simulated casino activity.
While Linden Lab does not offer an online gambling service, Linden Lab and Second Life Residents must comply with state and federal laws applicable to regulated online gambling, even when both operators and players of the games reside outside of the US. And, because there are a variety of conflicting gambling regulations around the world we have chosen to restrict gambling in Second Life as described in a revised policy which is posted in the Knowledge Base under “Policy Regarding Wagering in Second Life”.
As you review this new policy, please remember that Resident compliance with real world laws has always been an integral part of our Terms of Service. We appreciate your cooperation with this policy, and your understanding that we believe this action is in the best interest of providing a successful Second Life service. 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.
Policy
It is a violation of this policy to wager in games in the Second Life (R) environment operated on Linden Lab servers if such games:
(1) (a) rely on chance or random number generation to determine a winner, OR (b) rely on the outcome of real-life organized sporting events,
AND
(2) provide a payout in
(a) Linden Dollars, OR
(b) any real-world currency or thing of value.
This includes (but is not limited to), for example, Casino Games such as:
o Baccarat
o Blackjack
o Craps
o Faro
o Keno
o Pachinko
o Pai Gow
o Poker
o Roulette
o Sic Bo
o Slot machines
It also includes Sports Books or Sports Betting, including the placing of bets on actual sporting events against a book-maker or through a betting exchange.
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.
Wagering Games FAQ
1. Does this policy mean that all simulated gambling in Second Life(R) is illegal? Have I broken the law by gambling in Second Life? Can there be any retroactive consequences?
Linden Lab’s policy is not intended to identify which gambling activities may be legal where you live, and we cannot provide legal advice to you. Because gambling activities may be controlled by the law where the bettor lives in some places, and in others affect the operators of wagering games, we have decided to take a broader approach by prohibiting all games that meet the criteria in our policy.
It has been a basic tenet of Second Life that all Residents are legally responsible for their own activities and for complying with the laws of the local jurisdiction in which they reside. If you are violating our policy, or if you are otherwise concerned that you may be engaging in illegal gambling, you should stop.
2. Is this a blanket ban — i.e. is this simply a ban on simulated casinos or all types of gambling?
The wagering games described in the policy will not be allowed in Second Life. It applies to objects and games whether or not they are in a building that you may call an inworld “casino.”
3. What kind of wagering games are affected?
The policy applies to gambling games which:
(1) (a) rely on chance or random number generation to determine a winner, OR (b) rely on the outcome of real-life organized sporting events,
AND
(2) provide a payout in
(a) Linden Dollars, OR
(b) any real-world currency or thing of value.
4. Does the policy apply to all games based on real-life sports activities?
The policy prohibits Sports Books or Sports Betting, including the placing of bets on actual sporting events against a book-maker or through a betting exchange. However, the policy does not prohibit “fantasy sports” leagues if the rules and operation of those games comply with all applicable laws.
5. Does this policy apply to “skill contests?”
This policy only applies to wagering games that meet the criteria listed above. If your game or contest does not meet the above criteria, it is not restricted under this policy, but applicable laws and local practice may impose additional requirements on you. This policy does not give you guidance on what your legal obligations are – as noted above, that is your responsibility to determine.
6. How will you enforce this measure? How can you detect these games?
Our staff will review, investigate and respond to appropriate notices. We may retain additional staff or services to conduct this activity. When we discover objects or games within Second Life that meet the policy’s definition, we will remove them from Second Life.
7. What will the consequences be for those who continue to play or operate games that fall under this policy?
Any user who consistently violates the policy or our Terms of Service will be suspended, and may be terminated. Linden Lab may also comply with validly issued subpoenas in connection with law enforcement investigations and legal actions.
8. I live somewhere where online gambling is not illegal. Does this policy apply to me?
This policy applies to all use of Second Life. It isn’t intended to describe what is or isn’t legal for any particular resident or in any particular place. It describes what Linden Lab believes is appropriate to maintain its business requirements and to operate Second Life.
9. Will this take effect immediately? How will it work procedurally to shut down? Will there be reimbursement involved for virtual casino owners?
* It will take effect immediately.
* Second Life Residents are responsible for their own behavior and compliance with the policy.
* There will be no reimbursement if Linden Lab removes objects or activities that violate this policy.
APLINK - itsReal 
Very interesting!
haha, I heard about this. Second life is only a computer game but real money is being exchanged through it so it must comply with laws like real gambling sites. I can see this entire game turning into a redlight district with underground casinos. they will probably hire cyber police to enforce the law!
I thought they already did have some sort of Cyber policing regime?
Look like an interesting Game though.