Five Years In Prison For SL Casino Opertors ?

Ummm:

It appears that all casino owners in SL will be in violation of the new Internet Gambling Prohibiton Act and will be subject to a maximum criminal penalty of 5 years in a Federal prison:


SEC. 102. MODIFICATION OF EXISTING PROHIBITION.

Section 1084 of title 18, United States Code, is amended to read as follows:

`Sec. 1084. Use of a communication facility to transmit bets or wagers; criminal penalties

`(a) Except as otherwise provided in this section, whoever, being engaged in a gambling business, knowingly--

`(1) uses a communication facility for the transmission in interstate or foreign commerce, within the special maritime and territorial jurisdiction of the United States, or to or from any place outside the jurisdiction of any nation with respect to any transmission to or from the United States, of--

`(A) bets or wagers;

`(B) information assisting in the placing of bets or wagers; or

`(C) a communication, which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers; or

`(2) accepts, in connection with the transmission of a communication in interstate or foreign commerce, within the special maritime and territorial jurisdiction of the United States, or to or from any place outside the jurisdiction of any nation with respect to any transmission to or from the United States of bets or wagers or information assisting in the placing of bets or wagers--

`(A) credit, or the proceeds of credit, extended to or on behalf of another (including credit extended through the use of a credit card);

`(B) an electronic fund transfer or funds transmitted by or through a money transmitting business, or the proceeds of an electronic fund transfer or money transmitting service, from or on behalf of the other person;

`(C) any check, draft, or similar instrument which is drawn by or on behalf of the other person and is drawn on or payable through any financial institution; or

`(D) the proceeds of any other form of financial transaction as the Secretary of the Treasury and the Board of Governors of the Federal Reserve System may prescribe by regulation which involves a financial institution as a payor or financial intermediary on behalf of or for the benefit of the other person,

shall be fined under this title or imprisoned not more than five years, or both.

how does this effect sl though?

Quit trolling. This has been covered and Lindens aren't real.

And it wouldn't just be casinos if and when the law applies to SL. It would be tringo, bingo, slingo, basically any event that awards cash as a prize based on chance.

And before we go there, maybe we should step back and look at how the law applies to the prostitution and porn in SL.

And even one step back you really need to bring in the copyright lawyers and hang nearly everyone who has ever uploaded a texture to SL.

Disclaimer: IANAL

In principle, the U.S. government could subpoena LL to obtain the RL information of anyone running a casino in SL. The U.S. government could then charge those individuals under the statute.

What does it mean to LL? They don't actively perticipate in the gambling industry, except through the buying and selling of L$, so probably nothing.

I dont think it could effect SL . Because we use linden to gamble with like in game money. Not use our credit card give it to the casino and gamble online.

...haven't there been a million threads about this as well as a legal clarification by SL's lawyer, or has something new happened today?

LL states that Lindens arent worth anything, but we all know that they are, some live off Second Life transactions, so im sure that puts the Law on the player and the game provider in SL, and off the Lindens completely...how nice for us

I don't think that person was trolling, they asked a simple question.

The reason this affects SL, is that SL is hosted in the United States, which is where this law is going into effect.

I will try and break this down, piece by piece.

use of "a communication facility for the transmission in interstate or foreign commerce".
-- a communication facility would be phone lines, internet, telegraph.. anything that is used to communicate across state and country lines.

"within the special maritime and territorial jurisdiction of the United States, or to or from any place outside the jurisdiction of any nation with respect to any transmission to or from the United States"
--the communication specifically restricted, is that which goes to, or from the United States, or passing through US servers.

"A) bets or wagers;
(B) information assisting in the placing of bets or wagers; or
(C) a communication, which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers"
--the things listed above are the specific things that are now illegal. So, no making bets, telling people to make a bet for you, or telling someone they won a bet.

SO. Part one now reads as follows, when we break it down:
A communication to, from, or routed through the US, either placing a bet, requesting a bet be made on your behalf, or communicating that you have winnings from a bet made, is now illegal.



Hope that helps.

See this also new thread

/327/bb/143252/1.html

Might be a fair idea if we all stick to one thread no disrespect intended

Regards

John

" (6) The term `bets or wagers'--

`(A) means the staking or risking by any person OF SOMETHING OF VALUE upon the outcome of a contest of others, a sporting event, or a game predominantly subject to chance, upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome;"

My Emphasis

It probably boils down to whether the US Government consders Lindens to be an actual form of currency. Since Lindens aren't traded on (RL) currency futures exchanges, I dare say not.

If they did, *all* of the in-game, cash-related transactions would be under scrutiny (Did you charge sales tax on that item? Did you report the income from your store on your income taxes?).

Personally, I'm not concerned.

ETA: I also imagine, since LL is in control (via the LINDEX) of the in-game currency exchange --whether it's Lindens to US$ or vice versa-- they would be responsible for tracking, disclosure and implementation of any changes to the current game world for purposes of legality.

If this were the case the entire law could be negated by on-line casinos selling chips rather than your directly placing bets.

same here because i think lindens would of said something by now.

under the new definitins the bet does not have to be made in "currency". Only that it be something of value.

This was already illegal via the wire act of 1961

http://en.wikipedia.org/wiki/Interstate_Wire_Act_of_1961




What has changed is that the US is now persuing banks for their involvement in this process.

Note that they have not clarified whether this involves just sports betting or other types of gambling, such as poker, slots, etc.



It's certainly a step forward to shut down international sports betting, beyond that though, it's not clear.

Income resulting from SL businesses is clearly subject to Federal Income Taxation unless it can be qualified under the Hobby Income provicions of the IR Code.

" (3) by adding at the end the following:

`(6) The term `bets or wagers'--

`(A) means the staking or risking by any person of something of value upon the outcome of a contest of others, a sporting event, or a game predominantly subject to chance, upon an agreement or understanding that the person or another person will receive something of value in the event of a certain outcome;

Honestly, people probably *should* be paying tax on income generated in L$, regardless of whether they are converted in US$ or not. You have to pay taxes on income gained through barter (I'll paint your house if you cut my grass for the next two months) at the fair market value even when no cash changed hands, and L$ are no different.

Why? They're not responsible for you.

Brings an interesting real life scenario into the mix...

Donald Trump had serious financial problems with his Atlantic City Casino.

His father waltzed in and bought one million dollars in chips. He didn't cash them in. Therefore, Trump Jr had enough cash to stay in operation in the black.

The chips held by his father were worthless until they were cashed in (which they weren't. It was a clever solution).

As for what is currency, there is a difference between "legal tender" and actual value.

Take a look on a dollar bill sometime. It's "legal tender" (which means it's only good unless the Government goes bankrupt).

Because of the ultra-complicated legalese terminology in what is considered actual viable currency and what isn't, this is something I'm actually going to trust LL on, in regards to notification and changes in-game. Purely from a CYA perspective on their part.

JMO

Anyone who thinks you can make money in SL, and say it's only a game to IRS, et al, is foolish.

Lindens are same as poker chips you would buy at Las Vegas Casino. You pay USD for them, and redeem for USD.

This is not a legal opinion, but rather knowlege of working with the Fed. Amen

The definition of the the method of communication has been greatly expanded and is not limited to "wire communications:

"1043 Definition -- "Wire Communication"

The definition of a wire communication is set forth in 18 U.S.C. § 2510(1). It is limited to "aural" transfers made by aid of "wire, cable or other like connection." Because the 1994 Act specifically eliminated the exclusion from this definition the radio portion of a cordless telephone communication that is transmitted between the cordless telephone handset and the base unit, such communications are now protected by the statute. See H.Rep. No. 103-827, 103d Cong., 2d Sess. (1994), reprinted in 1994 U.S.Code Cong. & Ad.News 3489, 3510. See McKamey v. Roach, 55 F.3d 1236, 1238 n.1 (6th Cir. 1995) (noting change in law)."

http://www.usdoj.gov/usao/eousa/foia_reading_room/usam/title9/crm01043.htm


Compare "communications facility " undr the new act:

" (2) by amending paragraph (5), as so designated, to read as follows:

`(5) The term `communication facility' means any and all instrumentalities, personnel, and services (among other things, the receipt, forwarding, or delivery of communications) used or useful in the transmission of writings, signs, pictures, and sounds of all kinds by aid of wire, cable, radio, or an electromagnetic, photoelectronic or photooptical system, or other like connection (whether fixed or mobile) between the points of origin and reception of such transmission.';

http://thomas.loc.gov/cgi-bin/query/F?c109:4:./temp/~c109GjD5UN:e1962:

Interesting story TY

BUT the issue of whether a linden is actiual currency or legal tender is totally irrelevant. The issue is whether or not a Linden has any value which it clearly does.

At the very least, a Linden$ counts as "credit", which you can use to gamble further, or exchange with Linden Labs for cash. I suspect these questions should be asked of Paypal and Visa/MC however, since they're the real organizations to handle the cash transfers.