US gaming probe rocks top banks

[Kurn]

Unless you live in Washington State, it is not illegal to gamble online in the US. It is however, illegal to gamble online and not pay taxes. The only thing about this whole mess that concerns players is that it has become very difficult to deposit money in an online site. It is still relatively simple to withdraw money.

The UIGEA does not make it illegal for Americans to gamble online. It restricts financial institutions from transferring money to the site.

With respect to reporting income for tax purposes. No law change regarding the legality of playing alters the fact that your income is taxable. Income from illegal activity is still taxable in the US.