What are people betting on in Second Life? Whether someone will make a nuclear bomb grief or not? Gambling on what animal will go shooting across the sky next? Actually, it seems the FBI is concerned about people going to in-game casinos, gambling with the currency of Second Life, then trading that in for real money.

From the article:

It's hard to judge the scale of gambling in SL as the biggest poker casinos are making a mere $1,500. The US government has not made a decision on whether virtual gambling with virtual money is legal — Even if SL's money can be exchanged for US dollars! Apparently, Linden could even face criminal charges under American anti-gambling statutes that say "something of value" is wagered. The Unlawful Internet Gambling Enforcement Act, which was passed last year, targets credit card companies and other electronic funs transfers that make internet gambling possible. Linden could be held to that statue. But it gets tricky: Things like whether a 3D sim casino is actually the same as a casino. According to Sean Kane, a lawyer who has studied the virtual world legal issues:

If you're buying money on the Lindex (a virtual currency exchange) and utilizing it for gambling purposes, Linden could have a much higher level of responsibility. If they would be found in violation, that's difficult to say, but I can see a much stronger case being made.

Read the full article over at kotaku.com