Location: Empty Lot Where a Casino Might Have Stood

Linden Labs’ decision to ban almost all wagering in Second Life has created a few shock-waves in the metaverse.  At a gut level, I’m pleased.  No more stupid slot machines next door to an art museum or in the middle of a park.

In the end, however, what could the Lindens do?  Online gambling is illegal in the US and squarely in the sights of the FBI.  For that reason the Lindens’ earlier decision to ask the Feds to check online wagering and provide advice seems like a wise one.

Will other aspects of SL that may offend—such as sex and violence—be next?  I’d wager (well, not with Linden Dollars, anyway) that they will not.  Linden Labs has put in place age verification and set up a teen grid.  Presumably, these show due diligence (whatever that means—I’m no lawyer, thank God) to limit access to potentially offensive content.  And unless we get some type of openly theocratic government in the States, stronger regulations do not appear to be forthcoming.  In any case, were that nightmare to happen I’d wager (not with Linden Dollars, anyway) that Linden Labs, not to mention this blogger, would be working out of Europe or Canada and thumbing our noses at the Puritans in DC.

But libertarian impulses must yield to common sense when it comes to existing law. Linden Labs is a US firm with its servers (mostly, for now) on American soil.  It had no choice.

If, however, a few coders packed up and opened a virtual world with severs in a nation that does not ban online gaming, there would be precious little our Feds could do.  And I hope that happens—other than protecting minors, I want the Web as open as possible.  If chumps want to bankrupt themselves in real or online casinos, it’s not the government’s business.

In the end, I’m betting that as in Cyberpunk fiction, virtual worlds will become bigger and more important than governments.  In the futures described by Gibson and Stephenson, virtual currency trading eventually topples the conventional currency markets and a stateless, anarchic gray economy replaces the one we know. 

Will it happen in real life? So far the Cyberpunks have called lots of developments spot-on.  I’d say that it’s a safe bet.

Be sure to check the “In a Strange Land” Archive for old posts

The USA only passed the non online gambling bill because they realised how much money was not being taxed.

Yes—a smart move on their part…I’d seen the story about the FBI some time ago and noted it here.

It’s a brave and braven new world, isn’t it?

apparently linden labs invited the FBI to look at the gambling and decided after talking with the FBI to shut it down.

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