From what I understand, it's illegal for the most part. I would imagine that there are loopholes such as if the site was hosted in the states and someone went out on international waters and and used their cell phone, then maybe it would be ok. I guess it may depend on the state, I'm really not sure.
I was wondering if there was a way to include another alternative for the exemption of horse racing. MMO horse mount racing?
I don't get paid to write these or anything like that, so that's all I haz. Feel free to comment.