Like many other casino owners in Second Life, Anthony Smith was struggling on Thursday to figure out what future, if any, he had on the 3-D social network. Linden Lab, which develops and operates Second Life, announced a ban on gambling Wednesday. Until then, gambling had been one of the most popular activities in Second Life.
Smith, of Brighton, UK, feels Linden Lab dealt with him unfairly. He notes that US law banning Internet gambling went into effect in October.” If this law was made in October, 2006, I think it is wrong of Linden Lab to take my money,” said Smith, a mortgage broker in real life. He noted that the name of the business made it obvious what kind of business he was running.
Smith, 34, who goes by the name “Anthonymark Alcott” in Second Life, operates a full server on Second Life, known in SL jargon as a “sim.” He said he spent 1 million Linden Dollars on the sim and virtual gambling equipment and furnishings, since launching in February. And that's not counting staff or his own equity. He said he invested all revenues from the clubs back into the business, to pay for new equipment and entertainment. Smith had planned, starting next month, to buy one sim per month and lease it out for residential and commercial business. But those plans are on hold.
“This will be the start of the end for Second Life, just as the US government wants,” Smith said. He said he believes the US government is threatened by Second Life, because they can't control SL or tax it. Also, he said, real-life casinos want Internet gambling shut down to avoid competition. “They grease the US government's hand,” he said. "For a country where you are supposed to be free, it sure is a contradiction.” Shutting down gambling will stop Second Life growth, because gambling represents a significant portion of Second Life transactions, Smith said.
He also said he believes Linden Lab's abrupt implementation of the new policy is unfair.
“I do not know if I trust Linden Lab anymore to work with,” he said. “The way they do business is not good. They change their policy and advise if you don't comply immediately, you get all your assets frozen, or even worse, dissolved. Any other company in the world who treated their clients like this would not last long.” The gambling decision is the latest in a series of steps Linden Lab has taken to crack down on adult entertainment in Second Life, driven, at least in part, by the law in the nations in which it operates.
Like many other casino owners in Second Life, Anthony Smith was struggling on Thursday to figure out what future, if any, he had on the 3-D social network. Linden Lab, which develops and operates Second Life, announced a ban on gambling Wednesday. Until then, gambling had been one of the most popular activities in Second Life.