From my understanding, betting on sports online is NOT illegal in the US. Correct? What's illegal is not reporting any winnings on your taxes. So my question is this... if a bettor makes more than he loses and has multiple cashouts throughout the year and reports everything on their taxes.... nothing "bad" can or will happen, right?
Just looking for some clarifications on what makes it legal vs illegal and the taxes around it. I'm assuming it'd be pretty easy to not report all or any of it but assuming someone was honest and did what would the outcome be?