Section can only apply overseas when based on an allegation that the gambling in question is illegal under a state law whose reach straddles jurisdictional lines. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.mobile gambling industry BEST POKIES WIN Article analyzes the Federal Illegal Gambling Business Act. “illegal gambling business” means a gambling business which-- the meaning given the term in section of the Federal Credit Union Act (12 U.S.C. ). Gambling is legally restricted in the United States, but its availability and participation is Gambling businesses slowly developed in various communities. . Gambling is legal under US federal law, although there are significant restrictions.