As we blogged back in the Summer of 2014, gambling is strictly prohibited in Second Life and operating or participating in a game of chance that provides a Linden Dollar Token payouts is a violation of our Terms of Service.
However, games of skill are legally permitted in many jurisdictions, and we’ve seen that many Second Life users are interested in playing such games for Linden Dollar Tokens. We updated our gaming policy in Second Life at that time and opened applications for Skill Gaming. Skill Gaming applications are now open as of today, March 24, 2020, for those who wish to become authorized creators and/or operators of Skill Games in Second Life.
In summary, skill games that offer Linden Dollar Token payouts are allowed in Second Life, but each game, its creator, its operator, and the region on which it is operated must be approved by Linden Lab.
Applications for creators and operators will be available on the FAQ page as of today, March 24, 2020.