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LosPollosTv Loses $300k of Profit on Gambling Crash Roobet - LosPollosTv Stream Highlights#1This type of casino is illegal in the UK, with the Gambling Commission taking a hardline stance against any operator that accepts cryptocurrency. The answer is yes, but it's a bit complicated. There is no federal law that specifically prohibits crypto gambling, but the Unlawful Internet. Crypto gambling winnings are subject to federal taxes as ordinary income, and any increase in the value of winnings upon conversion or disposal.