Following an FBI review of Second Life, Linden Labs has banned gambling in the virtual world, reports The Times.

The FBI was invited by Linden to tour Second Life and make sure operations in-world were compliant with US laws.

Since online gambling is currently illegal in this country, the company has banned all gambling in Second Life, regardless of the operator's country of origin.

Linden will not refund the money, in some cases thousands of dollars, spent by Second Life residents on casino construction. The company will also implement regular monitoring of activities in the virtual world to ensure inhabitants comply with this and other standards.