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F.B.I. Invited to Internet Casinos on Second Life

— April 4, 2007 — Tech
Today, April 4, 2007, the virtual creator of Second Life, Linden Lab, has invited the F.B.I. to “look around in a virtual casino.” Second life, a popular “online virtual world with millions of registered users and its own currency and economy”, the Linden dollar, can be exchanged for U.S. dollars. Most lawyers have said that “placing bets with Linden dollars likely violate U.S. anti-gambling statutes”, but the U.S. government has not decided on legality and it is still uncertain “the likelihood of any crackdown.” The three largest online virtual casinos in Second life rake in “a modest $1500 per month” in profit.
Trend Themes
1. Virtual Gambling - Disruptive innovation opportunities: Develop secure and regulated platforms for virtual gambling within online virtual worlds like Second Life to tap into a growing market.
2. Virtual Economies - Disruptive innovation opportunities: Create tools and services that facilitate the exchange of virtual currencies, such as the Linden dollar, with real-world currencies to support the emergence of virtual economies.
3. Legal and Regulatory Frameworks - Disruptive innovation opportunities: Establish legal and regulatory frameworks specifically designed for online virtual worlds, such as Second Life, to provide clarity and guidance on issues like gambling and virtual currencies.
Industry Implications
1. Online Gambling - Disruptive innovation opportunities: Incorporate virtual gambling options into existing online gambling platforms to expand offerings and attract a broader audience.
2. Financial Technology (fintech) - Disruptive innovation opportunities: Develop innovative solutions that bridge the gap between virtual currencies and traditional financial systems, enabling seamless exchanges and transactions.
3. Legal and Regulatory Compliance - Disruptive innovation opportunities: Create specialized legal and regulatory compliance services tailored to the unique challenges of online virtual worlds, ensuring compliance with relevant laws and regulations.
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