The expression "profitable until deemed illegal" is used when what the business is doing is so obviously despicable and evil that if it continues the government will probably pass a law against it. (This is basically an offshore gambling site we're talking about, though, no more and no less. Therefore, I'm not sure how apt the expression is to what's actually going to happen.)
Or, to put it another way, it's so fiendish that no one though to ban it before.
Legally I suspect it's quite distinctly not a gambling site. I would guess this to be legal in at least 44 states here, and I think it's fine in the other 6 too, though their contest laws are fairly convoluted.
Or, to put it another way, it's so fiendish that no one though to ban it before.