Starting Fantasy Faire 2026 no Gen-AI produced items are allowed anywhere within the Fairelands, whether they are for sale or not.
Bixyl Shuftan
Bixyl Shuftan
Linden Lab's move to ban gachas has been among their most controversial decisions in Second Life history. Gachas have been a popular way of selling goods. But they've also had no shortage of harsh critics. The ban brought out much criticism to the Lab, "Why shut down these business people?" But it also got a lot of cheers, "It's about time. They should have been gone a long time ago."
The move has been compared to the gambling ban in 2007 when Linden Lab ordered obvious games of chance, at least those that required Linden dollars to play for a chance to get a bigger cash return, taken down. The reasons today are pretty obvious - they were against California law, which Linden Lab falls under. Probably the biggest criticism was that the Lab only gave the operators 48 hours to shut down.
A number of critics of gachas claim they're little more than gambling themselves, that in order to get the prized rare item, people have to spend an unknown number of Lindens to get it. And therefore should fall under laws against gambling. Another comparison is to the "Lootboxes" of various games, among the most infamous examples being the ones on Battlefront II that made the game which already cost money to buy a "pay to win" one. Another example was Overwatch, in which the items in the crates didn't affect gameplay, but critics charged the desire for rare ones would be an incentive for players, notably minors, to spend money to purchase one. Several countries have passed laws or debated proposed laws against them.
In my opinion, there is another move by Linden Lab that more closely resembles it's gacha ban, it's May 2013 move to shut down independent Linden dollar exchangers. This move came two months following the US Treasury Department's Financial Crimes Enforcement Network issuing a statement of guidelines on virtual currency, which were interpreted by one blogger as Linden Lab having to register with FinCEN to avoid steep penalties. To those familiar with the blogger's article, it did seem the Lab paniced and responded with a ban. But to the Lab's surprise, a number of residents outside the US stated they'd have to stop coming to Second Life as they now had no means to buy Linden dollars. So the Lab partially rescinded the ban, and the exchangers willing to be licensed by the Lab could do business again. But two years later, the Lab would once again ban them. This time, they had made it easier for Non-US residents to buy Linden dollars, and so the third-party Linden exchanger ban was for good.
There was a lawsuit by California against Apple concerning games from it's app store in which lootboxes were involved, but it was dropped. So as Second Life is under California law, it's under no obligation legally to drop them. Might access to Second Life be blocked in countries that ban lootboxes? Unlikely as to my knowledge, no country has complained to Linden Lab about it's gachas, including those with laws against lootboxes. So it seems instead of waiting until an actual complaint in which it could either fight in court or comply, it decided to jump the gun and ban the games months, perhaps over a year, before any serious challenge was mounted. Considering that gacha machine owners were given just 30 days to transition, either there's something going on behind the scenes only the Lab knows, or once again the Lab made a panic move in anticipation government actions.
Probably one more distinction between Second Life gachas and lootboxes is that there's no way, at least legitimately, a young child can put cash into an SL gacha. No one under 13 is allowed at all. While 13-15 year olds can come on, they need a sponsor organization and are limited only to the few sims owned by that sponsor. Accounts belonging to 16 and 17 year olds, under the rules they are limited to General-rated sims. If the Lab really was feeling pressured to "do something," limiting gacha machines to Mature and Adult rated sims would have been a much less drastic action. While a minor could always lie about their age and claim to be 18, that's already a banable offense.
Yes, a lot of people hate gachas. There's no shortage of people going virtually broke trying to get that one rare item they want. And if people go onto Marketplace to try to find it, some can only find only a few at huge prices. But there are ways to deal with these problems rather than a heavy-handed ban.
So what effect will the gacha ban have on Second Life? Some of the gacha merchants will do doubt find other ways to sell their products. Some may decide they'll be working harder for less money and close up shop. Two of the biggest gacha events, The Arcade and Gacha have already announced they're continuing. But some lesser known ones may find trouble attracting clients.
Time will tell.
On a final note, I've occasionally played gachas myself. If I ever got what I didn't much care for, well, maybe someone might like it for a gift. And once in a while the rare items I managed to get became gifts as well.
Sources: Screenrant, Wikipedia, Bloomberg Law, gamesindustry.biz
Bixyl Shuftan
On Thursday August 5, Linden Lab expanded their list of Frequently Asked Questions added at the end of their announcement on Monday that Gacha machines were to be banned. The FAQ was first added on Tuesday August 3.
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Q: Should any newly developed sales mechanism or newly created items be called “gacha” going forward?
A: No, as we would like to eliminate any confusion with the usage of the term going forward.
Q: Is a game that requires skill to win the prize you want permitted going forward? For example, you throw a dart and you must hit a certain number to get the prize corresponding to that number.
A: This would need to go through the Skilled Game review process and be presented in a Skilled Gaming region, if approved.
Q: I am selling an item that is known, paid for and delivered to a purchaser, and for each purchaser they are entered into a prize drawing where randomly selected people who bought the item may receive a rare item as a result of the drawing, is this permitted?
A: You must also provide a free, concise and easy way for anyone to enter into the random drawing with an equal chance to win.
Q: Can I sell an item, and also then include an unknown random item attached as a bonus? For example, Like a buy one, get one free (BOGO), but the free item is the random/unknown item.
A: No
Stay tuned for further developments
Linden Lab's announcement on Monday that they would be banning gacha machines from Second Life at the start of next month had people asking what would happen to the various merchants and events that depend on these sales for their business. Of the events, two of the largest are the Arcade Gacha and the Gacha Guild. So no doubt a number were wondering what would happen to them. Would they fold, or try to change and stay?
According to announcements from them, both plan to continue.
Hat Tip: Daniel Voyager, Matoazma Kazyanenko
Bixyl Shuftan
As anticipated, Linden Lab has come up with a "Frequently Asked Questions" in regards to their gacha machine ban. It has been added to their announcement, appearing below it.
Q: Is it possible to extend the policy deadline?
A: We are sorry that we are not able to further extend the policy deadline. However, we have been able to extend the enforcement of the policy change an additional 30 days. To be clear, starting on September 1 we expect gacha as a sales mechanism to cease. However we will start with warnings, and any enforcement of the policy as it would be applied on an account will not begin until after September 30.
Q: How are breedables impacted by this policy change?
A: This current policy change and deadline does not apply to breedables or other life simulation products. At the present we are working with external counsel on the subject of breedables. If any action is required we will make a separate announcement and have a separate timeline associated with it.
Q: Will popular games like 7seas be impacted by this policy change?
A: No, because the purchase of bait to go “fishing” is a purchase being made of a known item, and also the fish you catch while playing the game are non-transferable. To be clear, if they are not currently, they must be going forward.
Q: How are subscription boxes affected?
A: Subscription boxes are not affected as long as all subscribers are getting the same content box. Different items being sent to different subscribers on a chance basis is not allowed.
Q: How are Linden Homes affected?
A: Linden Homes are not impacted by this policy change. Linden Lab owns the homes and they are not transferable.
Linden Lab stated this list of questions will likely be updated as time goes on.
She would later say the claw game in question was apparently considered gambling by the Linden who banned her. She would add it was at other peoples' stores and there was no Linden dollar payout, and that she had heard nothing from Linden Lab until the babn, "They have claimed I have been warned several times and I was not. The only thing I have received from LL was a ticket they opened that I wasn't even aware of since there was no emails about it until I went to submit a ticket I didn't even know it exissted. ... I have grown my business' on SL for 10+ years to just have them take it from me is so heartbreaking."
Word soon got around about what happened. The Newser heard about it from a friend on our Discord channel. Rain would get a number of replies. "This whole situation smells of stinky vindictive bull****." "It just blows my mind that they wouldn't take every possible step first to ensure you were contacted in some way, even going to direct messaging, and then removing the machine. Or hell, why not just remove the machine, give you a notice and a slap in the wrist, and go about it?" "This is so unfair. I hope you'll be able to fix it, and that LL will see how this was a honest mistake."
Eventually, someone came up with what the issue was, "It's been a law case in California for years now. Essentially California courts ruled claw machines are technically gambling on the account of not being guaranteed a prize. And because gambling is illegal in California, any definition of gambling follows." But in the words of one person on Twitter, "I didn't know that a claw machine would be considered gambling, I honestly don't know HOW MANY residents know either tbh."
Eventually, Patch Linden responded on Twitter that he was looking into the matter. The following day, Rain would announce the ban had been lifted.
So good news! @SecondLife @LindenLab have decided to unban me! I want to thank everyone for their support during all of this and thank you @LindenPatch. My marketplaces are still not available so please bare with me.
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