Originally posted on 05/24/2011:
this is correct. unless your bookie knows about other illegal activities in which you are engaged (such that he could roll on you for that if he's pinched), very little risk other than the obvious one: getting paid.
US Dept of Treasury and government in general has taken a non-enforcement position re: UIGEA with respect to individual bettors placing offshore bets - they only care about the book. same is true of local bookies and guys placing bets with them. it's like littering - not legal, but law enforcement deems it not worth the time, effort and expense to enforce.