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Is Second Life Even worth Gambling In?

28 August 2007

Second Life, the Internet-based 3-D virtual world entirely built and owned by its residents, was developed by Linden Research and launched in 2003. It is "inhabited" by a total of 8.5 million people who hail from all over the planet. Second Life’s marketplace currently does millions of US dollars worth of trade monthly, though all transactions are carried out in the self-styled "Linden Dollar" a virtual currency that does have a real but small value when converted to hard currencies such as the US dollar, the UK pound and the Euro.

Second Life might only exist in cyberspace but it has the potential to host real markets and real money – which is why so many mainstream bricks and mortar companies are being attracted to it. The semi-structured virtual environment already has corporations such as IBM, Dell, Cisco and PA Consulting setting up virtual offices within it and more and more commercial companies are moving in to exploit the medium and to use their virtual presence to hold press conferences, undertake recruitment, training and marketing and to make sales.

For example, Dell, a company that has always sold its computers either online, by phone or via catalogue, is experimenting with Second Life to allow customers to build their own custom-made PC's before ordering the real thing. In addition, the global consulting house, PA Consulting, held a joint virtual conference last month with the Sunday Times newspaper. Entitled, 'Getting real about business in Second Life', the virtual gathering of over 91 attendees is believed to have been the largest event of its kind yet held in Second Life.

Anyway, last October the US authorities outlawed online gambling, but at that time Linden Lab left it to the owners of virtual casino owners to decide whether they wanted to continue with their ventures or not. Then, out of the blue, came the unilateral diktat that prohibition would be introduced to Second Life.

Anthony Smith says, "If this action is because of a law made in the US October, 2006, I think it is wrong of Linden Lab to take my money." He is demanding that the San Francisco-based company reimburse him three months of server maintenance fees, as he no longer has a source of revenue to pay for them and is threatening to sue the company if he gets no redress. That's all we need, virtual bloody lawyers.

Gambling (or its enforced absence) may be an extreme case in point but, for bona fide corporations setting up in cyberspace, there is always the possibility that should Linden Lab ever terminate trading or take against a particular company or industry, that would be that. Out of business in no time flat, and with no come back.

OPN Staff
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