A question about gambling, taxes, and legality.?

Your wrong about federal laws concerning online gambling. It is not illegal to gamble online unless there are SPECIFIC states laws prohibiting online gambling, otherwise your okay. As far as federal law is concerned they only made it illegal for banks to fund gambling sites directly. Which means you can't write a check or use a credit card to deposit money directly into a gambling site although there are other options such as eWallets and payment processors.