A problem that will only get bigger is the response of government offices, especially the tax office, to online incomes. Julian Dibbell has written an amusing account of his attempts to declare his earnings from a month of playing Ultima Online and selling his treasures on ebay. Dragon Slayers or Tax Evaders in Legal Affairs.
He ventured to say that it was doubtful the IRS would treat virtual items as cash equivalents anytime soon. Until the Britannian gold piece trades on international money markets, or until the value of a virtual amulet is as widely recognized as that of a beer, he suggested, “I don’t think we’re recognizing Dungeon and Dragon [sic] currency as legal tender.”
The Swedish tax authorities have begun (as many others) to struggle with the concepts of people making money by click thrus such as Googles Ad-sense. But I doubt whether they have handled online earnings to a greater degree – yet.
Ars Technica discusses the Dibbell article. Also read Internet Gambling Regulation Present and Future by Mark Methenitis.