So, out of curiosity, is it illegal to do online gambling in the U.S. and if it isn’t then what are the ins and outs of it all? How does one place bets, gamble and collect winnings or hand out losses?
It's illegal to operate a site for Americans, I don't think it is illegal for an American to actually play and get paid online, there are and will always be sites who accept Americans and everybody else. I play at a few of those sites like Casino - Jeux de Casino. However I won't be surprised if it will soon be illegal for Americans to play online.
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