The Smuggler's Lantern is a specially hued lantern with the Spell Channeling and Faster Casting properties. What perhaps make it special is that it may only be obtained by a thief wielding a Smuggler's Edge, which automatically has a chance to steal an item of a monster with each swing. The Smuggler's Edge cannot currently be obtained by any means in game, but rather only as a special purchase item from EA's official UO online store UOGameCodes.com.
Faster Casting Confusion
Many individuals, upon seeing the Smuggler's Lantern, have declared that it does not, in fact, possess the Faster Casting property, decrying the claim by EA to the contrary as false advertising. This widely held belief is actually due to a common misconception; the Spell Channeling property always spawns with a complimentary Faster Casting -1. Thus, an item with the Spell Channeling property on it, in order to simply break even, must also spawn with the Faster Casting property in order to cancel out the penalty. Since displaying the resultant "Faster Casting 0" on an item would be tantamount to displaying on all items every property that they do not have, no Faster Casting is displayed at all.
The Smuggler's Lantern can drop in 100 different hues, according to the official UO online store.