Second Life Targeted for Shutdown as a "Game of Skill"?
by Pixeleen Mistral, National Affairs desk
The US House of Representatives Financial Services Committee hearings on H.R. 6870 today have some residents of Second Life concerned that the metaverse could become collateral damage in the war on online gambling, with suggestions that “games of skill†could be targets for regulation - most notably at the Net Freedom! Forever! - a web site paints a frightening picture of a regulation-induced Second Life shutdown.
H.R. 6870 - the “Payments System Protection Act of 2008†- is intended to clarify the Unlawful Internet Gambling Enforcement Act (UIGEA) - a law which requires financial institutions to block payments to Internet gambling interests. The UIGEA did not clearly define exactly what constitutes online gambling, leaving the door open for regulators to define certain activities as gambling, and require the financial services industry to block payments to these services. Evidently the financial services sector has plenty of free time to act as an anti-gambling enforcement agency, having recently mastered the valuation of mortgage-backed derivatives - a game of skill best exemplified by Lehman Brothers.
Both pro and anti gambling interests are lining up supporters to influence the wording of the legislation - and what appear to be faith-based initiatives are warning against “predatory gambling†targeting teenagers and furries. At the same time, gaming interests are hoping to limit the government’s reach. Will regulators turn their attention to speculating in the US stock market next? This is another activity that appears to resemble online predatory gambling.





















Recent Comments