Is gambling in SL really gambling?

With the recent arrest/indictment of the owners of BETonSPORTS.com, this has become a rather hot topic and one that should probably be addressed by Philip and/or Ginsu. As you are well aware, gambling is one of the more prominent industries in SL. So...

- Is it the position of LL that gambling in SL is legal?
- Do you consider the TOS statement that "the L$ has no value" to be sufficient to shield SL users that run casinos from prosecution?
- Given that LL is the primary source of L$<->US$ currency exchange, are you concerned that LL could be implicated as a supporter of illegal internet gambling?

Thanks in advance for your prompt answers!

Edited to include a link to an active General forum topic, /108/ca/121647/1.html

Hi Ricky! Asking about this...

Anna Bobbysocks also posted a related follow-up here:

/139/49/121826/1.html

Linden Lab has not been informed by any law enforcement agency that virtual world activities simulating casinos and the like constitute prohibited forms of gambling. However, users of Second Life are responsible for their own actions, and must make their own assessments regarding legal liability and risks. We would not support illegal gambling and we would cooperate with any law enforcement agency having jurisdiction to investigate such illegal activity in Second Life. If you are uncertain whether your activities carry legal risks for you, you are well-advised to consult with a competent legal professional.