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Illegal gambling is any type of gambling that is specifically prohibited by state law. Fines can be separate from, or in addition to, jail or prison sentences. Gambling & Gaming PC , , , , Information on sentence, punishment, jail, prison, probation, penalty and more. All misdemeanor and felony. Summary of gambling law isssues for every state. of one year or less being a misdemeanor and a longer possible sentence defining a felony. . (6) New Jersey Senate Bill seeks to clarify definition of illegal gambling to address.