"FBI investigators have visited Second Life's Interent casinos at the invitation of the virtual world's creator Linden Lab, but the U.S. government has not decided on the legality of virtual gambling."
There is no difference between Internet gambling and "virtual gambling" except that the latter takes place in a different currency. L$ are as freely convertible to USD as Euros are.
What, precisely, is the difference between Neteller (who set up an electronic wallet used to get money to and from gambling sites) and Linden Labs (who set up a virtual currency used to get money to and from gambling sites operated on their servers)?
"It's not always clear to us whether a 3D simulation of a casino is the same thing as a casino, legally speaking, and it's not clear to the law enforcement authorities we have asked," said Ginsu Yoon, Linden's VP for business affairs (and former general counsel.)
Where has he been? Does he think the government has been cracking down on sports betting sites because they're too dumb to label themselves "simulations" of sports betting? Does somebody at the Justice Department actually see a difference between a 3-D simulation of a poker room and, well, an online poker room?