A press statement from Linden Lab said, "Because there are a variety of conflicting gambling regulations around the world, we have chosen to restrict gambling in Second Life. Because this is an evolving area of law, we may continue to adjust and clarify this policy as we receive feedback from the community and from legal authorities or as new regulations, industry practices and technology solutions come into effect."

In April, Second Life invited the Federal Bureau of Investigation (FBI) to review its policy on online gambling and offer guidance. It would appear that feedback from the Government agency was negative as Linden‘s new terms of service also state that the company will comply with all subpoenas from US law enforcement agencies demanding information.

"Linden Lab will actively enforce this policy," said Linden’s press statement.

"If we discover gambling activities that violate the policy, we will remove all related objects from the inworld environment, may suspend or terminate the accounts of residents involved without refund or payment and may report any relevant details, including user information, to authorities and financial institutions."

While Linden‘s rules have always prohibited ‘illegal’ activity, this latest move may not go down well with Second Life gamblers who wager with Linden dollars. It will also curtail revenue earned by Linden from those who own casino-style islands in the game and contribute to Linden through currency fees and land rental.