According to reports, popular virtual world, Second Life, has banned all forms of online gambling in order to comply with US laws.

The virtual world lets players create animated proxies of themselves called 'avatars' who interact among themselves, participate in various activities, and even trade virtual properties and services.

Founders of Second Life, Linden Lab, have now posted a warning on the company blog that says if gambling activities are discovered, all related objects will be removed from the in-world environment. They might even suspend or terminate residents' accounts without refund, or report user information to authorities/financial institutions.

The ban encompasses all forms of online gambling, including blackjack, Pai Gow, Poker, Roulette, and Slot machines.

Earlier this year, Second Life had invited the FBI (Federal Bureau of Investigation) to scour it's virtual world for discrepancies regarding compliance with US online gambling policy. Apparently, FBI was not too happy with what it found in the virtual world.

Since October last year, US laws decree all forms of online gambling as illegal.