But they probably thought of that and were somewhat specific about the allowable types of insurance.
edit: I went and read the relevant text of the act. Especially in light of recent events, I find it amusing that Congress couldn't come up with a definition of "gambling" that inherently excluded derivatives trading - they had to do that explicitly as well.
It also does not cover second life no matter what the article says.
If you are buying and selling something for fair value, that is not a game of skill. Not unless you want to expand the definition to every business in america.
A simple definition of the difference is that in a game of skill the amount of money has nothing to do with the activity. This is not so in business, second life, or the stock market.